Reference no: EM131211301
1. Business B, a calendar year C corporation, has incurred losses for each of the last five years. Before considering depreciation, Business B has an operating loss for this year. Which depreciation technique will maximize the firm’s tax benefits?
>Accelerated Cost recovery system
>Section 179
>Modified accelerated cost recovery system
>Bonus Depreciation
>Straight Line.
2. Which tax consequence should a corporation consider when determining the type of dividend to give to stockholders?
>Stock dividends are typically tax free to shareholders
>Cash dividends are tax free to shareholders
>Stock dividends are tax deductible to the corporation
>Cash dividends are tax deductible to the corporations.
3. Which circumstance qualifies for ordinary loss treatment?
>Stock purchased from another stockholder become worthless
>An affiliated corporation security become worthless
>A capital asset security become worthless
>Stock inherited become worthless.
|
Describe the effect of these transactions on entity
: The Coffee Company engages in the following transactions during the taxable year. Describe the effect of these transactions on the entity and its owners if the entity is organized as:
|
|
Compute breakeven sales in number of TV sets of each option
: A Company sells TV sets. Sale price per unit is $250 each. The company’s cost to manufacture a TV set is $100 (all variable). Ali, the manager, wishes to rent a display and sale stall at the Armidale Show 2016. Compute the breakeven sales in number o..
|
|
College of arts and science deans proposal is adopted
: The Eastern University Business School (B-school) teaches some undergraduate business courses for students in the Eastern University College of Arts and Science (CAS). Calculate the current revenue the B-school is receiving from undergraduate busines..
|
|
Create the required journal entries for the transactions
: The projected cost is $2 million. A bond issue for $1.2 million has been authorized, and the remainder is supposed to come from a contribution of $800,000 from the general fund. The bonds sold for $1.3 million, a premium of $100,000. Create the requi..
|
|
Which circumstance qualifies for ordinary loss treatment
: Business B, a calendar year C corporation, has incurred losses for each of the last five years. Before considering depreciation, Business B has an operating loss for this year. Which depreciation technique will maximize the firm’s tax benefits? Which..
|
|
Police department normal operating expenditures
: Police Department normal operating expenditures. Proceeds from the Governmental Unit's bond sale (monies received from issuance of long-term debt). Grant received for general purposes in which the entire amount (including the principal and any earnin..
|
|
What is the weighted average number of shares to be used
: What is the weighted average number of shares to be used in the calculation of basic earnings per share for 2015?
|
|
Fixed asset will be depreciated straight-line to zero
: Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,550,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worth..
|
|
The business generated taxable income
: Fleming, Inc., a domestic corporation, operates in both Canada and the United States. This year, the business generated taxable income of $400,000 from foreign sources and $300,000 from U.S. sources. All of Fleming’s foreign-source income is in the g..
|