MMM Company has taxable income of $300,000. The company received a dividend of $50,000 from a domestic corporation in which it holds a 50% ownership interest. It also has tax depreciation that is $20,000 greater than financial statement depreciation. These items were properly accounted for in determining taxable income. Without regard to tax expense, what is financial statement income of MMM Company?
A. $312,500.
B. $352,500.
C. Some other number.
D. $345,000.
Answer: B
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Racer Corp. acquired all of the common stock of Tangiers Co. in 2016. Tangiers maintained its incorporation. Which of Racer's account balances would vary between the equity method and the initial value method?
A. Investment in Tangiers Co., Equity in Subsidiary Earnings, and Retained Earnings. B. Expenses, Investment in Tangiers Co., and Equity in Subsidiary Earnings. C. Goodwill, Investment in Tangiers Co., and Retained Earnings. D. Expenses, Goodwill, and Investment in Tangiers Co. E. Common Stock, Goodwill, and Investment in Tangiers Co.
Divine Foods produces a gourmet condiment which sells for $16 per unit. Variable costs are $6 per unit, and fixed costs are $5,000 per month. If Divine expects to sell 1,500 units, compute the margin of safety in units.
A) 500 units B) 1,000 units C) 1,500 units D) 8,000 units
The manager of a luxury car rental company has noticed that demand for rentals is highly dependent on the state of the national economy. When the economy is performing well, she experiences lots of demand. However, when the economy is poor, she experiences very little demand. This demand pattern is likely an example of?
a. Trend b. Seasonality c. Cyclical d. Random variation
Social media is a worldwide party just waiting for companies to join the fun is an example of ________
A) humor B) a simile C) a metaphor D) a personal anecdote