Distributions in excess of a corporation's current and accumulated earnings and profits are treated as a nontaxable recovery of capital unless they exceed the basis of the stock.
Answer the following statement true (T) or false (F)
True
Dividends are defined as distributions made from earnings and profits. Dividends are subject to tax.
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Tyson Enterprises is considering investing in a machine that costs $30,000. The machine is expected to generate revenues of $10,000 per year for six years. The machine would be depreciated using the straight-line method with no half-year convention over its six year life and have no salvage value. The company considers the impact of income taxes in all of its capital investment decisions. The
company has a 40 percent income tax rate and desires an after-tax rate of return of 12 percent on its investment. The net present value of the machine is: A) $2,891. B) $(5,332). C) $(13,555). D) $15,225.
On February 15, Jewel Company buys bonds of Marcelo Corp. for $200,110 cash. This debt investment is classified as available-for-sale securities. This is the company's first and only investment in available-for-sale securities. Jewel Company sells 40% of the Marcelo Corp. debt investment on November 17 of the current year for $102,200 cash. The entry to record this sale includes a:
A. Debit to Loss on Sale of Debt Investments for $22,156. B. Debit to Cash for $80,044. C. Credit to Debt Investments-AFS for $80,044. D. Debit to Debt Investments-AFS for $80,044. E. Credit to Loss on Sale of Debt Investments for $22,156.
Lack of control over the content and timing of public relations is a limitation in using publicity-based public relations tools.
Answer the following statement true (T) or false (F)
What Strategic issues particular to the enterprise(s) and context described
What will be an ideal response?