User Account

All Pages

What is the amount of nol that sinopia may use

Assignment Help Financial Accounting
Reference no: EM132764338

Problem 1: Sinopia completed a corporate restructuring transaction with Cyan on May 31 of the current year. Cyan distributed 30% of Sinopia's stock to its shareholders in exchange for all of their stock in Cyan. At the completion of the reorganization, Cyan's assets were worth $900,000, its liabilities were $350,000, and it held an NOL carryover of $207,674. The applicable Federal long-term tax-exempt rate is 3%, and Sinopia is in the 25% state and Federal income tax bracket. What is the amount of NOL that Sinopia may use in the current year? What is the net present value of the NOL carried forward to future years? Sinopia earns a 6% after-tax rate of return.

Reference no: EM132764338

Questions Cloud

Benefits booklet for the employees within organization : You have been asked by your human resources (HR) director to create a benefits booklet for the employees within your organization.
Explain the modigliani and miller : Fully explain the Modigliani and Miller's dividend irrelevancy theorem, ensuring that you explain why it is necessary to absent taxes and transaction costs and
How much goodwill should parma recognize from acquisition : If there is a less than 50 percent chance that subsidiary will be able to utilize NOL carryforward, how much goodwill should Parma recognize from acquisition
Which industry group is northern cola in : Northern Cola is a long-standing and hghly competitive company with a consistent market share and stable annual returns on equity(ROE). The introduction of two
What is the amount of nol that sinopia may use : What is the amount of NOL that Sinopia may use in the current year? What is the net present value of the NOL carried forward to future years?
Washing their hands between patients : Clinical staff members are not washing their hands between patients.
Determine the yearly amount for the first four years : The truck has a 400,000 km life. The CFO wants you to the following analysis for depreciation determine the yearly amount for the first four years.
What is the net income for this firm : What is the net income for this firm? (Do not round your intermediate calculations and round your answer to the nearest whole number, e.g, 32).
Administrators are faced with variety of ethical issues : Health care providers, managers, and administrators are faced with a variety of ethical issues.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Identify techniques for forecasting financial statements

Identify techniques for forecasting financial statements and explain when they should be used - ink in terms of financial performance and non-financial factors

  Prepare the statement of retained earnings for durham design

Prepare the statement of retained earnings for Durham Design Studio for the year ending December 31?, 2018. The? asset, liabilities of Durham Design

  What will the depreciation charge be for the year

company policy is to depreciate buildings at 20% per annum on a straight-line basis. What will the depreciation charge be for the year ending 30 June 2020?

  Classification of financial statement items-current asset

Carnival Corporation & plc is one of the largest cruise companies in the world with such wellknown brands as Carnival Cruise Lines, Holland America Line, and Princess Cruises. Classify each of the following items found on the company's balance sheet ..

  What will happen to price of a single bond with par value

What will happen to the price of a single bond with a par value of $1,000 if the required bond yield unexpectedly falls to 5% or rises to 7%?

  What''s the cash payback period

My company is considering buying new equipment for $450,000, I expect the equipment produce net cash flows of $50,000 over the ten year life. The annual depreciation will be $45,000. What's the cash payback period?

  Prepare the journal entry using the percent of sales method

Assume that you have a company. And the management team estimates. Give any amount of sales and prepare the journal entry using the percent of sales method.

  What is the company cost of equity capital

Ortiz's CFO has calculated the company's WACC as 11.77%. What is the company's cost of equity capital? Round your answer to two decimal places.

  Preparing the operating section of the statement

When using the indirect method, which of the following would be deducted from net income when preparing the Operating Section of the Statement of Cash Flows?

  Find no discontinued operations during the year

ssume the company has 33,000 common shares, no dividends on preferred stock, a 25% tax rate, and no discontinued operations during the year.

  What is the annual rate on the bank loan

How much would it cost (in percentage terms) if the firm did not take the cash discount, but paid the bill in 70 days instead of 10 days?

  Stockholders equity accounts have the stockholders equity

The Zeller Corporation's stockholders' equity accounts have the following balances as of December 31, 2016: Common stock, $10 par (30,000 shares issued and outstanding) $ 300,000 Additional paid-in capital 2,000,000 Retained earnings 5,700,000 Total ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd