Assume BJ Companies is indifferent between issuing equity and issuing debt. Assume the corporate tax rate is 21 percent and dividends are taxed at the personal level at 20 percent. What is the personal tax on interest income?
A) 20 percent
B) 42 percent
C) 40 percent
D) 14 percent
E) 37 percent
E) 37 percent
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Through ________ activities, a firm gathers and analyzes publicly available information about rivals
A) economic infrastructure B) competitive intelligence C) demographic D) perfect competition E) business cycle
The major difference between pre-training and training is that pre-training is more _____
a. related to federal and state regulations b. related to future, as well as present positions c. related to selling and buying functions d. company specific
Assume a partnership made up of Partner A and Partner B. Partner C is going to join the partnership by purchasing a one-quarter interest from Partner A for $10,000 and a one-third interest from Partner B for $8,000 . At the time, Partner A has a capital interest of $40,000 and Partner B has a capital interest of $30,000 . The following journal entry should be made:
a. Partner A, Capital DR$10,000; Partner B, Capital DR$8,000; Partner C, Capital CR$18,000. b. Partner A, Capital DR$10,000; Partner B, Capital DR$10,000; Partner C, Capital CR$18,000; Cash CR$ 2,000. c. Partner A, Capital DR$10,000; Partner B, Capital DR$10,000; Partner C, Capital CR$20,000. d. Partner A, Capital DR$8,000; Partner B, Capital DR$12,000; Partner C, Capital CR$20,000. e. Partner A, Capital DR$3,000; Partner B, Capital DR$15,000; Partner C, Capital CR$18,000.
When dissolution takes place by voluntary action, the shareholders are responsible for winding up the affairs of the corporation.
Answer the following statement true (T) or false (F)