Natasha is a single taxpayer with $100,000 of taxable income. Included in the taxable income is distributions of earnings this year as follows:CE Corp., a C corporation$1,000SE Corp., an S corporation$2,000Paris Corp., a foreign corporation$3,000How much of the $6,000 distribution will be taxed at the 15% tax rate?
A. $1,000
B. $6,000
C. $3,000
D. $0
Answer: A
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The expansion stage of the relationship development process involves efforts by both parties to investigate the benefits of a long-term relationship.
Answer the following statement true (T) or false (F)
A shipper moving expensive goods of small size from Boston to Seattle would likely use:
A) rail. B) air. C) motor. D) water. E) none of the above
Best Bagels, Inc. (BB)
currently has zero debt. Its earnings before interest and taxes (EBIT) are $130,000, and it is a zero growth company. BB’s current cost of equity is 13%, and its tax rate is 25%. The firm has 30,000 shares of common stock outstanding selling at a price per share of $25. Refer to the data for . Now assume that BB is considering changing from its original capital structure to a new capital structure with 40% debt and 60% equity. This results in a weighted average cost of capital equal to 11.7% and a new value of operations of $833,333. Assume BB raises $333,333 in new debt and purchases T-bills to hold until it makes the stock repurchase. BB then sells the T-bills and uses the proceeds to repurchase stock. How many shares remain after the repurchase, and what is the stock price per share immediately after the repurchase? Remaining shares; Stock price after repurchase A. 18,000; $27.78 B. 19,400; $29.44 C. 20,800; $31.51 D. 21,800; $34.34 E. 23,500; $35.71
Techno Robots produces a functioning toy robot. At a production and sales level of 10,000 robots, the firm has
the following information: Selling price per unit = $15 Variable costs per unit = $8 EBIT = $17,500 What is the break-even point in units for the firm?