Swamp Corporation, a calendar-year taxpayer, has been an S corporation for several years. However, the corporation has become quite profitable, and management feels that it would be advantageous to make a public stock offering. What are Swamp Corporation's options concerning the date of revocation of the S election?
What will be an ideal response?
If Swamp revokes its S election before March 16 of the current year and has the election terminated at the close of business on December 31 of the previous year, the S election is retroactively revoked to January 1 of that year. If the revocation election is made after March 15 of the current year, it does not take effect until January 1 of next year. Swamp may also specify a prospective current-year revocation date as long as the date specified is on or after the date the revocation is made.
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Route Two Tire Company makes a special kind of racing tire. Variable costs are $220 per unit, and fixed costs are $31,000 per month. Route Two sells 500 units per month at a sales price of $300. The company believes that it can increase the price if the tire quality is upgraded. If so, the variable cost will increase to $230 per unit, and the fixed costs will rise by 25%. The CEO wishes to increase the company's operating income by 15%. Which sales price level would give the desired results? (Round your answer to the nearest cent.)
A) $990.00 per unit B) $282.00 per unit C) $318.00 per unit D) $328.20 per unit
Capital expenditures, also called balance sheet expenditures, are additional costs of plant assets that provide benefits extending beyond the current period.
Answer the following statement true (T) or false (F)
After reviewing the household budget, you estimate the following auto costs
Ownership cost per mile $ .30 Operating cost per mile .15 Total cost per mile .45 The marginal cost of driving your car another mile is therefore A) $ .30. B) .15. C) .45. D) .90.
Which one of the following actions should a company take IMMEDIATELY when it finds that its product is defective?
a. inform buyers about it b. take corrective action in a timely manner c. stop producing the product d. lower the price