What is the corporations current earnings and profits

Assignment Help Financial Accounting
Reference no: EM13884818

Ardbeg Corporation has $800,000 of taxable income on which it pays a tax of $272,000. In determining its earnings and profits for the year, the accountant used the following information:

a. Ardbeg received a dividend of $20,000 from a company in which it has a 60 percent interest.

b. It used a $30,000 capital loss carryover to offset its entire capital gain.

c. It was unable to deduct $12,000 of its charitable contribution due to the limitation.

d. It had a loss of $20,000 on the sale of some investments to its sole shareholder.

e. It received $10,000 in interest on City of Cleveland bonds

What is the corporation's current earnings and profits?

Reference no: EM13884818

Questions Cloud

A basic interest rate swap is priced as a zero : A basic interest rate swap is priced as a zero net present value transaction. Explain what this means. Use the two year swap data to demonstrate your argument.
What is the corporations current earnings and profits : Ardbeg Corporation has $800,000 of taxable income on which it pays a tax of $272,000. What is the corporation's current earnings and profits?
What amount should be acceptable to both parties : Allan has a surplus of funds on June 15 and will settle the early if Value Furniture will make an adjustment reflecting the current short term simple interest rate should be of 7.25%. What amount should be acceptable to both parties?
Determine initial velocity which a soccer player must kick : Determine the initial velocity with which a soccer player must kick the ball, such that the ball bounces and then achieves maximum height of 2.20 m at pt. C or just passing under the horizontal bar. Coefficient of restitution between the ball and ..

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the direct material cost for 2010

Forham Inc. manufactures stainless steel knives. Following are factory costs incurred during 2010 - What is the direct material cost for 2010 and what is the direct labor cost for 2010

  Ashly farms leased a hay baler from agrico tractor company

Calculate the present value of the cost of the lease payments to Ashly on January 1, 2010.

  What would you recommend to mr. cartwright

What would you recommend to Mr. Cartwright and to the banker and what would the income statement and balance sheet look like if he took the discounts for the entire 2004 year?

  Create financial statements for spring brangus stud pty ltd

For each of the independent situations identified above, consider and conclude whether the entity is a reporting entity and whether it is required by the Corporations Act 2001 to prepare general purpose financial statements.

  Purpose journal entries to account for the foreign currency

Purpose journal entries to account for the foreign currency option, import purchase and firm commitment.

  Explain the meaning and importance of economic substance

Create a PowerPoint presentation for a seminar aimed at future business owners. Explain the meaning and importance of economic substance and how it relates to the financial statements.

  Illustrate what is the noncontrolling interest

Hardwood reported net income of $150,000 while Pittstoni reported $90,000. Illustrate what is the noncontrolling interest in the 2010 income of the subsidiary?

  Quarter absorption costing net operating income

SmoothIt Inc is facing a problem with their 4th quarter absorption costing net operating income on December 23rd. How many units need to be produced for inventory to meet net operating income target if sales commission is left unchanged at 4% ?

  Concepts behind stockholders equity and the transactions

To demonstrate your understanding of the concepts behind stockholders equity and the transactions which support it, read the scenario below and discuss: Al and Ed, friends since childhood, decided to go into business together. They entered into a par..

  Understand the importance of cash management

Identify items of cash (and cash equivalents), understand the importance of cash management, and discuss revenue recognition when the right of return exists

  Motivational consulting business

Todd Olson is the owner and operator of Alpha, a motivational consulting business. At the end of its accounting period, December 31, 2013, Alpha has assets of $652,450 and liabilities of $206,170. Net income (or net loss) during 2014, assuming that a..

  Boston pay to the bondholders every six months

On January 1, 2013, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. How much interests will Boston pay (in cash) to the bond..

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!

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