INTERMEDIATE ACCOUNTING II/ Intermediate Accounting, Spiceland/Sepe/Nelson Re: Judgment Case 18-5 Requirement 1. The two alternatives Alcoa has for accounting for the repurchase of it’s shares are: 1) The shares can be formally retired. 2) The shares can be named treasury stock Either way, total shareholders’ equity remains the same. Cash is used to repurchase common stock so the effect is to reduce both cash and shareholders’ equity. This choice does, however, affect how individual shareholders’ accounts are reported in the balance sheet.
http://www.irs.gov/businesses/small/article/0,,id=146330,00.html.” Dividends, interest, annuities, and royalties not accumulated through the ordinary course of trade or business is Portfolio income, not passive income. The sales of stock and bonds are also portfolio income. 7-13) Martially participation is
The debt ratio is total debt divided by total assets. It provides owners with information on how much debt financing is being use to purchase assets. The lower percentages indicate a company finances business operations through cash rather than debt. (Vitez) The debt-to-equity ratio is total debt divided by total equity. This calculates how much of the business is financed through private investors; it is also expressed in percentage form.
The book basis of the transferred equipment was $6 million, and the equipment was recently appraised for $6.5 million. The fair value of the investment in Theta is $5.5 million as reasonably determined. Acer has a significant influence over Theta, but does not control financial interest in Theta. Under U.S. and international standards the appropriate accounting for this transaction is for the investment under Acer Corp to be accounted for using the equity method in the consolidated financial statements, or under the fair value option for US headquartered companies only. The FASB ASC 845-10-30 provides guidance for certain nonmonetary exchanges in which one entity transfers nonfinancial assets to a second entity in exchange for a noncontrolling ownership interest in that second entity.
Hilary Butsch November 22, 2010 Personal Investing During the pre-investment process I completed a couple tests that calculate my risk tolerance and my investor profile. After analyzing the information, I determine that I could put about 40 per cent of my investments into stocks and the remaining 60 per cent into bonds and money markets. The purpose of investing in bonds is to ensure a growth of your money. Bonds are much safer than stocks. In stocks you buy partial ownership of the company so depending on their success your money will either increase or decrease; whereas, bonds you are loaning your money to companies and when the bond matures you get your money back--all the while collecting interest on your loaned money.
Like the partnerships the S-corporations basically have no federal income taxes. S-corporations owners are taxed on their portion of earnings. The popularity of S-corporations fluctuate with the income tax law. Sometimes the corporation taxes are more than the individual and vice versa. Some of the similarities to a closely held corporation is each shareholder's liability is limited to the amount of their investment.
Verizon owns 23.1% of this company and recorded Net Income of 925 million in 2013. When looking at notes to 10k, Verizon’s corporate eliminations policy is “Corporate, eliminations and other includes unallocated corporate expenses, intersegment eliminations recorded in consolidation, the results of other businesses, such as our investments in unconsolidated businesses, pension and other employee benefit related costs, lease financing, as well as other adjustments and gains and losses that are not allocated in assessing segment performance due to their non-operational nature. Although such transactions are excluded from the business segment results, they are included in reported consolidated earnings. Gains and losses that are not individually significant are included in all segment results as these items are included in the chief operating decision maker’s assessment of segment performance” (10K 2013, Edgar). In the reconciliation of total reportable segments, the total corporate eliminations were $912 million.
Mr. Smith, The $300,000 fee that you earned off of the case could be used in your gross income as directed by Section 61(a) of the Code. The code states that gross income is limited to this item, but that this is merely the most typical source of income. Due to not knowing your combined AGI, it is not known what the tax implications would be completely. Being a LLC has major advantages of a corporation. Your personal assets are not subject to claims of the corporation’s creditors, only your investments in the corporation are subject to any claims.
The total amount is $1,517,391 |13. Tuttle Buildings Inc. has decided to go public by selling $6,000,000 of new common stock. Its | |investment bankers agreed to take a smaller fee now (6% of gross proceeds versus their normal 10%) in exchange for a 1 year option to | |purchase an additional 250,000 shares at $7.00 per share. The | |Investment bankers expect to exercise the option and purchase the 250,000 shares in exactly one year, when the stock price is forecasted to| |be $6.50 per share. However, there is a chance that the stock | |price will actually be $12.00 per share one year from now.
It also had accounts payables of $51,369, short-term notes payables of $11,417, and accrued taxes of $6,145. The net working capital of the firm is None of these $68,931 $63,510 $69,655 Multiple Choice Question 81 Which of the following best represents cash flows to investors? Net income, minus dividends paid to preferred stockholders. Earnings before interest and taxes times 1 minus the firm’s tax rate. Cash flow from operating activity, plus cash flow generated from net working