What are the five major income categories that are taxed under the Subpart F rules? Explain the concept of Subpart F income.
What will be an ideal response?
1) Income from the insurance of U.S. and foreign risks.
2) Foreign-based company income.
3) Boycott-related income.
4) Income equal to the amount of any bribes, kickbacks, or other illegal payments made by or for the CFC.
5) Income from countries where, for political or other reasons, the deferral privilege is denied.
Subpart F income is one of the two categories of income (the other being increases in investments in U.S. property) that must be constructively distributed by the CFC to its U.S. shareholders on the last day of its tax year or on the last day of its tax year on which CFC status is retained. Subpart F income includes five major categories of "tainted" income that the U.S. government feels should be taxed to the CFC's U.S. shareholders in the year in which it is earned.
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Corporation ABC is in a highly competitive industry. NGO pressure has been exerted to have this industry change its sourcing policies. ABC decides to publicly announce that it is the first in the industry to change in sourcing policy. Spar and LeMure define this as a ________ response type used to gain a ________ advantage over others in the industry.
A) competitive; pre-emption B) resistance; pre-emption C) pre-emption; competitive D) capitulation; competitive E) resistance; collective
The segment of the business market that seeks to achieve goals other than the standard business goals of profit, market share, and return on investmentconsists of _____
a. institutions b. resellers c. producers d. manufacturers
To use the competitive style of conflict management, a person must give primary concern to the needs of the other party
Indicate whether the statement is true or false.
Racquet Master (RM) Sports manufactures and distributes two types of tennis rackets: Dominant Drive (DD) and Major Smash (MS). Both types of rackets go through Operations 1 and 3. MS also goes through Operation 2, which adds a layer of graphite for additional strength. All material is added at the beginning of their respective operations.The following information relates to a work order from Discount Warehouse, Inc. for 30,000 units of DD (Work order #286) and 8,000 units of MS (Work order #354). Work order #286Work order #354?Direct materials: ?Operation 1$120,000 $80,000 ?Operation 2 --- 20,000 ?Operation 3 45,000 30,000 ?Conversion costs: Operation 1 30,000 15,000 Operation 2 --- 25,000 Operation
3 14,793 14,896 Required:Assume that there are 3,000 units of DD and 2,000 units of MS in Operation 3 at the end of the reporting period that are 45% and 65% complete, respectively. Compute the ending inventory for Operation 3. What will be an ideal response?