Answer:
Giada's Book Store
The company would have reported a total profit of $19,000, which is $10,000 less.
Explanation:
a) Data and Calculations:
Income statement for the most current year:
Cookbook Travel Book Classics Total
Sales $68,000 $126,000 $53,000 $247,000
Cost of goods sold 40,000 66,000 21,000 127,000
Contribution margin 28,000 60,000 32,000 120,000
Order and delivery processing 21,000 24,000 11,000 56,000
Rent (per sq. foot used) 2,000 5,000 4,000 11,000
Allocated corporate costs 8,000 8,000 8,000 24,000 Corporate profit $ (3,000) $23,000 $9,000 $29,000
Corporate profit = $29,000
less allocated cookbook costs 10,000
Adjusted corporate profit = $19,000
b) Discontinuing the Cookbook product line would have eliminated the contribution the product line makes to defraying Rent and Allocated Corporate costs totalling $10,000 unless the Rental space was a variable cost.
Abby had a checkbook balance of $1,002.45. She paid $76.98 to the electric company and $254.34 to the water company. What is Abby’s current checkbook balance?
Answer:
$671.13
Explanation:
Abby had a checkbook balance of $1,002.45
$76.98 was paid to the electric company
$254.34 was paid to the water company
Therefore the current checkbook balance can be calculated as follows
=$1,002.45-($76.98+$254.34)
= $1,002.45-$331.32
= $671.13
Hence Abby's current checkbook balance is $671.13
Compare and contrast the following forms of business organization: sole proprietorship,general partnership,limited liability company,and corporation as to ease of formation,liability of owners,management,and tax implications.
Answer:
Find the explanation below.
Explanation:
1. Sole Proprietorship is owned by a single person or a married couple.
a. Ease of formation: This business is very easy to form because owners are not required to have legal documentation for the business to begin operation.
b. Liability of Owners: Owners are personally liable for the success or failure of the business. This means that they bear the cost of whatever debt or losses that are incurred in the business and can be sued for it.
c. Management: The owner makes all the management decisions that could affect the business. He sets the time when his business can be run as well as the prices for his products.
d. Tax Implications: They fill out Schedule C where they calculate the profit and loss from their business. They declare their income in Standard Form 1040 and they are subject to Self-employment tax.
2. General Partnership is a business agreement between to or more owners.
a. Ease of Formation: It is quite easy to start this business because little or no legal documentation is required to kick-start the business.
b. Liability: All partners are liable for debts and losses incurred in the business.
c. Management Decisions: The management decisions are made by the general partners. This affords them a measure of flexibility.
d. Tax implications: Income tax is not paid rather, a separate tax return form is filed.
3. Limited Liability Company: These business entities are run by two or more business partners.
a. Ease of Formation: It is relatively easy to form because it is governed by state rules and regulations which must be adhered to by the business owners.
b. Liability: There is a limited liability as just the business assets can be withheld when there is a legal battle. Personal assets of partners can not be withheld.
c. Management Decisions: There could be a member-managed LLC where members make decisions in the business or a manager-managed LLC one or two non-members are employed to manage the business and make business decisions therein.
d. Taxation: Taxation is done once and profits realized are passed through to the personal income taxes of the members.
4. Corporations are set up by a group of businesspeople.
a. Ease of Formation: They are not easy to form as proper documentation which is governed by state laws must be adhered to.
b. Liability: There is a limited liability as shareholders are not held accountable for the debts and losses of the corporation.
c. Management: There are directors of the corporation who are elected by the shareholders, They make decisions for the corporation. Business officers are also appointed.
d. Tax Implications: There are lots of taxation requirements for which the corporation might seek advice from a taxation advisor to prevent double taxation.
Turnbull Co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. It has a before-tax cost of debt of 8.2%, and its cost of preferred stock is 9.3%. If Turnbull can raise all of its equity capital from retained earnings, its cost of common equity will be 12.4%. However, if it is necessary to raise new common equity, it will carry a cost of 14.2%. If its current tax rate is 40%, how much higher will Turnbull’s weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings? (Note: Round your intermediate calculations to two decimal places.)
Answer:
Turnbull's weighted average cost of capital will be higher by 0.65% if it has to raise additional common equity capital.
Explanation:
By combining the WACC formula and retained earnings cost of capital,we will arrive at;
WACC = Debt W × after tax cost of debt + Preferred stock weight × cost of capital + Equity W × Cost of capital
= 58% × 4.92% + 6% × 9.3% + 36% × 12.4%
= 2.85% + 0.56% + 4.46%
= 7.87%
Also, using the same WACC formula and using common equity cost of capital, , we will arrive at the below;
WACC = Debt W × after tax cost of debt + preferred stock weight × cost of capital + Equity W × cost of capital
= 58% × 4.92% + 6% × 9.3% + 36% × 14.2%
= 2.85% + 0.56% + 5.11%
= 8.52%
Therefore, increase cost using common equity over retained earnings is [ 8.52% - 7.87%]
= 0.65%
N.B we arrived at 4.92% for after tax by;
Pre tax 8.2%
Current tax rate 40%
= Pre tax × ( 1 - cost of debt)
= 8.2% × ( 1 - 40%)
= 8.2% × 0.6%
= 4.92%
if average demand for invenrory item is 200 units per day lead time is three days and safety stock is 1-- units the reorder point is
please do you mean 1 unit for safety stock or 100 units, will solve for both
Answer:when safety stock =1, Reorder point= 601 units
when safety stock =100, Reorder point= 700 units
Explanation:
Reorder Point (ROP), also called reorder level, is the point of inventoryset by a busness in which it replenishes its stock of items.
given:
Average demand= 200
lead time = 3
when safety stock =1
Reorder point= (Average demand X Delivery lead time ) + Safety stock
= (200 x 3 ) +1 = 601 units
when safety stock = 100
Reorder point= (Average demand X Delivery lead time ) + Safety stock
= (200 x 3 ) +100 = 700 units
Welcome Inc. is a global Internet company that offers country-specific variations of its sites, keeping in mind the linguistic and religious differences between the countries. Welcome Inc. is most likely doing this to:
Answer:
reduce its cultural distance from the other countries
Explanation:
In this scenario, Welcome Inc. is most likely doing this to reduce its cultural distance from the other countries. Cultural distance refers to the differences in cultural values amongst countries, organizations, and stakeholders. In this case, Welcome Inc is trying to reduce this by making sure that they adjust their products and services to best accommodate these specific cultural differences in each country. In doing so they gain more loyal customers and increase their profits in each country which they do business in.
Construction Products Company and Dante enter into a contract for a sale of bricks and stones. Construction Products knows the purpose for which Dante will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises Group of answer choices
Complete Question:
Construction Products Company and Dante enter into a contract for a sale of bricks and stones. Construction Products knows the purpose for which Dante will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises:
Group of answer choices.
a. if the buyer is relying on the seller to select suitable goods.
b. if the buyer asks for it.
c. if the seller is a merchant who deals in goods of the kind sold.
d. in conjunction with lease contracts, not sales contracts.
Answer:
a. if the buyer is relying on the seller to select suitable goods.
Explanation:
In this scenario, Construction Products Company and Dante enter into a contract for a sale of bricks and stones. Construction Products knows the purpose for which Dante will use the goods (bricks and stones). Under the Uniform Commercial Code (UCC), an implied warranty of fitness of a particular purpose arises if the buyer is relying on the seller to select suitable goods. This simply means that, Construction Products who is the seller of the bricks and stones implied a warranty of fitness because they know the purpose for which Dante will use the acquired goods and should meet his requirements or needs.
Hence, Construction Products Company is bounded by the contractual agreement (warranty) to provide quality goods which would meet Dante's reasons for buying them since he relying on their expertise or judgmental skills.
Farmer Brown’s total cost curve is a. increasing at an increasing rate. b. increasing at a decreasing rate. c. increasing at a constant rate. d. decreasing.
The question is incomplete:
If Farmer Brown plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 5 bushels of wheat. If he plants 2 bags, he gets 9 bushels. If he plants 3 bags, he gets 12 bushels. A bag of seeds costs $120, and seeds are his only cost.
Farmer Brown's total-cost curve is
a. increasing at an increasing rate.
b. increasing at a decreasing rate.
c. increasing at a constant rate.
d. decreasing.
Answer:
a. increasing at an increasing rate.
Explanation:
To determine the answer, you can create a graph with the information given hich is attached.
You can see that the curve is increasing and because of that you can eliminate option d that is decreasing. Then, you have to consider that increasing at a constant rate would show an straight line which is not the case. Also, increasing at a decreasing rate would show a decreasing slope which is not what you see in the graph. Because of that, the answer is that Farmer Brown’s total cost curve is increasing at an increasing rate because the graphs shows an increasing slope.
Cash dividends of $45,000 were declared during the year. Cash dividends payable were $10,000 at the beginning of the year and $15,000 at the end of the year. The amount of cash for the payment of dividends during the year is
Answer:
$40,000
Explanation:
Dividend Payable
Opening Dividend $10,000
Add: Dividend Liability made $45,000
after Dividend declared
Less: Closing Dividend $15,000
Dividend to pay in Current year $40,000
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 4.4 percent indefinitely. The company just paid a dividend of $3.29 and you feel that the required return on the stock is 10.6 percent. What is the price per share of the company's stock?
Answer: $50.83
Explanation:
Based on the information given in the question, the following can be deduced:
r = required return = 10.6% = 0.106
D0 = Dividend = 3.29
g = growth rate = 4.4% = 0.044
The price per share of the company's stock will be:
= D0(1 + g)/(r - g)
= 3.29(1 + 0.044)/(0.106 - 0.044)
= 3.29(1.044)/(0.062)
= 3.15134/0.062
= $50.83
11. Garth Corporation sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then: A. profit will go up 10% B. profit will go up more than 10% C. profit will go down by less than 10% D. profit will not change
Answer:
D
Explanation:
Profit = Revenue - cost
Cost = fixed cost + variable cost
if variable cost increases by 10%, cost would increase by 10%.
Revenue also increases by 10%
So, the increase in revenue would be cancelled by the increase in cost and profit would not change
In 2019, Tim sells Section 1245 property for $28,000 that he had purchased in 2009. Tim has claimed $5,000 in depreciation on the property and originally purchased it for $15,000. How much of the gain is taxable as ordinary income?
Answer:
The taxable amount at an ordinary rate = $5000
Explanation:
The selling price of a property in 2019 is = $28000
The depreciation on the property = $5000
Original purchased price of property = $15000
Adjusted tax = an orginal price – depreciation
Adjusted tax = 15000 – 5000 = $10000
Gain = selling price – adjusted tax
Gain = 28000 – 10000 = $18000
The part of gain ($18000) that is taxable as ordinary rate = $5000
Here, $13000 will be taxed as section 1231 as a gained tax at capital gain rate.
It is crucial to understand the various factors contributing to your employees' stress as well as the consequences of it. Categorize the following sources of stress by dragging and dropping each one into its most appropriate category.
1. Task demands
2. Economic uncertalinty
3. Economic problems
4. Interpersonal demands
5. Technological change
6. Family problems
A. Environmental Sources of Stress B. Organizational Sources of Stress C. Personal Sources of Stress
Explanation:
A. Environmental Sources of Stress:
It is the stressors arising from environmental factors that can threaten the employee's work in some way.
2- Economic uncertalinty
5- Technological change
B. Organizational Sources of Stress:
This stress derives from internal or external conflicts that can occur at work, such as personal charges and poor relationships with other employees.
1. Task demands
4. Interpersonal demands
C. Personal Sources of Stress:
These are the stressors arising from the employee's personal life, which can directly impact the quality with which the employee performs his work.
3. Economic problems
6. Family problems
intext:"A company has net sales of $1,200,000 and average accounts receivable of $400,000. What is its accounts receivable turnover for the period"
Answer:
i think it would be 4x
Explanation:
im dumb
A project requires an initial investment of $10 million today. If the cost of capital exceeds the project IRR, then the project must have a(n):
Answer:
Negative NPV.
Explanation:
present value of cost exceeds present value of revenue that is been assumed in the investment plan of the said company/firm.
Net Present Value describes one of the discounted techniques of cash flow used in capital budget to determining the viability of a project or an investment. It is seen to have a huge difference between the present flow of the firms; which is cash inflows and the present value of cash outflows over a period of time. Experts has tagged its primary advantage to be that it is seen to considers the concept of the time value of money.
Milltown Company specializes in selling used cars. During the month, the dealership sold 26 cars at an average price of $15,400 each. The budget for the month was to sell 24 cars at an average price of $16,400. Compute the dealerships sales volume variance for the month.
Answer:
Sales volume variance = $32,800 favorable
Explanation:
Please refer to the below for Sales Volume Variance formula and calculation.
Sales Volume Variance = (Budgeted sales volume - Actual sales volume) Standard price per unit
= ( 24 units - 26 units) $16,400
= ( 2 units ) $16,400
= $32,800 favorable
The percent change in nominal gross domestic product (GDP) minus the percent change in price level equals
Answer:
Real GDP
Explanation:
Nominal GDP less percent change in price levels equals to real GDP
Nominal GDP is GDP calculated using current year prices
Real GDP is GDP using base year prices. it has been adjusted for inflation.
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
A security company offers to provide CCTV coverage for a parking garage for ten years for an initial payment of $45,000 and additional payments of $25,000 per year. What is the equivalent annual annuity of this deal, given a cost of capital of 4%?
Answer:
Equivalent Annual Annuity =$30,548.09
Explanation:
The equivalent annuity is the annual cash cash flows that is the same in value to the present value of the total cost associated with providing the CCTV coverage.
Equivalent Annual Annuity = Total PV of cost /Annuity factor
To determine the total prsent value of cost associated with CCTV would sum the present value of the additional payment for 10 years and the initial cost.
Initial cost - 45,000
Additional payment = 25,000
PV of additional payment = A× 1-(1+r)^(-n)/r
= 25,000 × 1- 1.04^(-10)/0.04 = 202,772.39
Total PV of cost = 202,772.39 + 45,000 = 247,772.39
Total PV of cost = 247,772.39
Equivalent Annual Annuity = Total PV of cost /Annuity factor
Annuity factor = 1-(1+r)^(-n)/r = ( 1- 1.04^(-10)/0.04) = 8.1109
Equivalent Annual Annuity =247,772.39 /8.1109 = 30,548.09
Equivalent Annual Annuity =$30,548.09
A process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases is called _____.
Answer: collaborative filtering
Explanation:
A process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases is referred to as collaborative filtering.
Collaborative filtering is a method of making predictions about a user by collecting information from other similar users.
You bought one of Great White Shark Repellant Co.’s 6.6 percent coupon bonds one year ago for $1,056. These bonds make annual payments and mature 11 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 4.5 percent. The bonds have a par value of $1,000. If the inflation rate was 3.2 percent over the past year, what was your total real return on investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
14.25%
Explanation:
For computing the total real return first we have to find out the present value and the required return which is shown below:
Given that,
Future value = $1,000
Rate of interest = 4.5%
NPER = 11 years
PMT = $1,000 × 6.6% = $66
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula the present value is $1,179.11
Now the required return is
= ($1,179.11 + $66) ÷ ($1,056) -1
= 17.91%
And finally,
total real return
= ($1.1791 ÷ 1.032) - 1
= 14.25%
In October, Novak Company reports 20,100 actual direct labor hours, and it incurs $198,000 of manufacturing overhead costs. Standard hours allowed for the work done is 22,000 hours. The predetermined overhead rate is $9.10 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $7.40 variable per direct labor hour and $42,400 fixed. Compute the overhead controllable variance.
Answer:
The answer is $7,200U
Explanation:
The formula for computing the overhead controllable variance is:
Actual overhead - budgeted overhead
We need to first calculate the budgeted overhead from the question.
Budgeted overhead = (budgeted cost x standard hours) + fixed labor cost
($7.40 x 22,000 hours) + $42,400
= $205,200
Actual overhead incurred is $198,000
Therefore we have:
$198,000 - $205,200
= $7,200U
The U means unfavorable, meaning actual overhead incurred is less than budgeted overhead
Which of the following dimensions of entrepreneurial orientation is described as a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities?
A) proactiveness
B) risk taking
C) autonomy
D) competitive aggressiveness
Answer:
A) Proactiveness.
Explanation:
This explained to be a conceptual development in entrepreneurial orientation that enacts a degree of anticipation in product and also increase a productivity in the entrepreneurial sphere. Some undiluted descriptions shows it to be the introduction of results based on its qualitative study, which is been aimed at the characterizing of the proactiveness in entrepreneurial software firms. Experienced researched organizations has shown that the one which are related to environment monitoring and opportunities quest been highlighted are also core part of proactiveness.
Harver company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 58000 units of RX5 follows. Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 58000 units of RX5 for 18.50 per unit. determine the total incremental cost making 58000 units of Rx5. Determine the total incremental cost of buying 58000 units of RX5. Should the company make or buy RX%
Answer:
Decision = Make
Explanation:
The incremental cost to buy and the incremental cost to make can be calculated as follows
DATA
Direct material = $4 (100% variable)
Direct labor = $8 (100% variable)
Overhead = $9 ( 70% fixed)
Total cost per unit = $21
Offered price = $18.5 per unit
Total units = 58,000
Solution
Incremental cost of making
Direct material ( 58,000 x $4) = $232,000
Direct labor (58,000 x $8) = $464,000
Overhead ( 58,000 x $9 x 30%) = $156,600
Total cost = $825,600
Incremental cost of buying
Total cost = No. of units x offered price
Total cost = 58,000 x $18.5
Total cost = $1,073,000
Decision: The company should make the product as the total cost to buy is $247,400 higher than the cost to make.
________is/are designed specifically to help bring customers eyeball-to-eyeball with the product, often at the point of sale or close to it.
Answer: Exhibitive Media
Explanation:
This type of media aims to strike a bond between the potential buyer and the product by engaging them eyeball-to-eyeball, often at the point of sale or close to it. The purpose of Exhibitive media is therefore to showcase the product to the prospective buyer.
Examples include;
Product Packaging - here the package is designed in such a way that it grabs the viewer's attention and makes them interested in tying to find out more about the product. It will also explain the benefits associated with the product briefly. Trade Shows and exhibits - Here sales people talk to prospective customers and demonstrate to them the workings of the product. The prospective customer can then ask questions to know more about the products, and etc.McCall Corporation has a capital structure consisting of 55 percent common equity, 30 percent debt, and 15 percent preferred stock. Any debt issues would have a pre-tax cost of 9.5%. Preferred stock can be issued for a cost of 11.5%. Common equity can be issued, but flotation costs of $4.25 per share of common stock would be paid. McCall common stock is currently selling in the market at $65 per share. McCall recently paid a dividend of $4 per share and company earnings and dividends are expected to grow at an annual rate of 8% indefinitely. McCall has a marginal tax rate of 35% and the firm wants to keep its current capital structure. If the firm needs to raise additional equity, what will be the firm's cost of capital?
Answer:
WACC = 12.14%
Explanation:
Cost of debt = 9.5% x (1 - 35%) = 6.175%
Cost of preferred stock = 11.5%
Cost of equity (Re) = {D₁ / [P₀(1 - F)]} + g
Re = {($4.25 x 1.08) / [$65 x (1 - $4.25/$65)]} + 8% = ($4.59 / $60.75) + 8% = 15.56%
WACC = (15.55% x 0.55) + (6.175% x 0.30) + (11.5% x 0.15) = 8.56% + 1.85% + 1.73% = 12.14%
Granite Stone Creamery sold ice cream equipment for $17,600. Granite Stone originally purchased the equipment for $94,000, and depreciation through the date of sale totaled $73,000. What was the gain or loss on the sale of the equipment
Answer:loss on the sale of the equipment =$3,400
Explanation:
---We first compute the book value of the equipment
Cost of asset=$94,000
accumulated depreciation = $73,000
Book Value of assets = Cost of asset-accumulated depreciation
= $94,000 - $73,000= $21,000
---Gain or Loss on the asset
Sale value of equipment = $17,600
Book value of equpment= $21,000
loss on sale of equipment = Sale value of equipment-Book value of equipment=$17,600- $21,000= -$3,400
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 15 % 32 % Bond fund (B) 9 % 23 % The correlation between the fund returns is 0.15. What is the Sharpe ratio of the best feasible CAL?
Answer:
0.296875
Explanation:
Given the following :
Probability distribution of risky funds :
- - - - - - - - - - - - - - stock fund(S) - - bond fund(B)
Expected return - - - 15% - - - - - - - - - - 9%
Std - - - - - - - - - - - - - 32% - - - - - - - - - - 23%
Correlation between funds return = 0.15
Sure rate = 5.5%
To calculate the Sharpe ratio we use the formula :
Sharpe Ratio = (Expected Return of Investment - Risk Free Rate) / Standard Deviation of excess return of investment
For the stock fund :
Expected return = 15%
Risk free rate = market sure rate = 5.5%
Standard deviation = 32%
Sharpe ratio of stock fund :
(15% - 5.5%) / 32%
= 9.5% / 32%
= 0.296875
For Bond fund :
Expected return = 9%
Risk free rate = market sure rate = 5.5%
Standard deviation = 23%
Sharpe ratio of bond fund :
(9% - 5.5%) / 23%
= 3.5% / 23%
= 0.1521739
Therefore the Sharpe ratio of the best feasible CAL is the higher of the two ratios which is 0.296875
Jack, an employee of Desert Sky, Inc., has gross salary for May of . The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of %. Which of the following is a part of the journal entry for accrual of the employer payroll taxes? (Assume a FICAOASDI Tax of % and FICAMedicare Tax of %.) Jack's income to date exceeds the FUTA and SUTA tax income limits
Answer:
Credit to Cash for $4,995 is correct
Explanation:
here is a complete question
has a gross salary for May of $7,000. The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of 21%. Which of the following is a part of the journal entry to record the disbursement of his net pay? (Assume a FICA-OASDI Tax of 6.2 % and FICA-Medicare Tax of 1.45%. Round the final answer to the nearest dollar.) A. debit to Cash for $4,995 B. debit to FICA Tax Payable of $4,995 O C. debit to Employee Income Tax Payable of $4,995 D. credit to Cash for $4,995
The computation of the amount that becomes the part for accrual the employer payroll taxes is shown below:
Gross Pay $7,000
Less: Deductions
Federal Income tax $1,470 ($7000 × 21%)
FICA-OASDI tax $434 ($7000 × 6.2%)
FICA-Medicare tax $102 ($7,000 × 1.45%)
Total Deductions 2006
Net pay $4,995
A registered representative ("rr") is an MFP of a municipal securities firm that is an underwriter for that municipal issuer. The MFP volunteers his time to the election campaign of a candidate for mayor of the issuer by offering to host a reception. The "rr," who is entitled to vote in the election, does not make a contribution to the elected official’s campaign, but does pay $300 of "out of pocket" expenses for the cost of the reception. Which statement is TRUE?
Answer:
The $300 of out of pocket expense exceeds the MSRB political contribution limit and will result in the municipal securities firm being banned as an underwriter for that issuer for 2 years.
Explanation:
The municipal securities firm is is underwriter for municipal issuer. The volunteers have paid $300 out of pocket but they are not entitled to make contribution to the campaign. This will result the firm being banned for two years as an underwriter for the issuer.
A broker is charged with discrimination. The Federal fair housing investigator notices that the Fair Housing Poster is not displayed in the broker's office. The investigator may
Answer:
charge the broker with discrimination with no further evidence
Explanation:
It is mandatory for a broker who markets dwelling for rent or sale to display fair housing poster in his or her office or at any dwelling meant for rent or sale. This is according to the Department of Housing and Urban development (HUD) that brokers who market dwelling should display such where they can be easily seen by persons who need the service of the broker to list or locate a dwelling or purchase same in a residential area.
The fair housing poster gives assurance to intending clients that the broker do not engage in any unlawful discriminatory services he offers. However, where a broker fails to paste the fair housing poster, he will not be subjected to any penalty but may be charged with discrimination by the federal fair housing investigator.
Michigan Corporation manufactured inventory in the United States and sold the inventory to customers in Canada. Gross profit from sale of the inventory was $500,000. Title to the inventory passed FOB: Destination. How much of the gross profit is treated as foreign source income for purposes of computing Michigan Corporation’s foreign tax credit in the current year?
Answer:
50% of gross profit = $250,000
Explanation:
The Tax Cuts and Jobs Act of 2017 changed some aspects of Section 863(b), but aspects regarding US companies producing locally and exporting their production to foreign countries remains the same. US companies can allocate 50% of gross profit as foreign source income, while the other 50% must be allocated as domestic income due to production related activities.
