The parent receives annual dividends from the subsidiary of $2,500,000. If the parent's marginal tax rate is 34% and if the exclusion on intercompany dividends is 70%, what is the effective tax rate on the intercompany dividends, and how much net dividends are received? Question 20 New York Waste (NYW) is considering refunding a $50,000,000, annual payment, 14% coupon, 30-year bond issue that was issued 5 years ago. It has been amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market.
What amount should Ruiz record on March 1, 2010 as paid-in capital from stock warrants? (Points : 4) $28,800 $33,600 $41,600 $40,000 3. (TCO A) On January 1, 2010, Trent Company granted Dick Williams, an employee, an option to buy 100 shares of Trent Co. stock for $30 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $900. Williams exercised his option on September 1, 2010, and sold his 100 shares on December 1, 2010.
Sept. 1 | Purchased inventory from Orion Company on account for $50,000. Darby records purchases gross and uses a periodic inventory system. | Oct. 1 | Issued a $50,000, 12-month, 8% note to Orion in payment of account. | Oct. 1 | Borrowed $75,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $81,000 note. | * Instructions (a) Prepare journal entries for the selected transactions above.
Facts In 1983, GEICO announced plans to purchase several million shares of its outstanding common stock for $60 per share. Among GEICO’s largest stockholders was Berkshire Hathaway, Inc., an investment company. Executives of the two companies decided that Berkshire would tender approximately 350,000 if its GEICO shares in the stock buyback plan, which would allow Berkshire to treat the transaction as a proportionate redemption. In a proportionate redemption, the percentage equity interest of on company in a second company is maintained at the level that existed immediately before the transaction. For federal taxation purposes, the proceeds received by the investor company in a proportionate redemption are taxed as dividends by applying the effective intercorporate dividend tax rate.
A.cash B.unsecured loans C.time deposits D.U.S. government securities Question 12 of 20 5.0 Points Identify and describe the factors, in addition to supply and demand, that determine interest rates. Question 13 of 20 5.0 Points You need $8,000 four years from now for a down payment on your future house. How much money must you deposit today if your credit union pays 5% interest compounded annually? Pick the closest answer.
Ethics of the Economic Bailout White Collar vs. Blue Collar Jobs Jeremy Bardin Dan Covelli Gavin Defreitas James Malvasio Matt Olson Dan Speer On 01 October 2008 the Senate debated and approved the Emergency Economic Stabilization Act of 2008. Two days later the House of Representatives voted to enact the aforementioned bill, and with President Bush’s signature, introduced a $700 billion Troubled Assets Relief Program to purchase failing bank assets. In the shadow of such a momentous occurrence, the struggling automotive industry, desperate for some form of assistance, approached the United States Senate in November with a plea for help with their financial crisis. On 19 November the heads of the “Big Three,”
If America could not get it right the first two times what makes us be able to have the Federal Reserves be successful this time around.” The first bank of the United States was set into law on April 25, 1791. Over the next five years of the first bank, the American government borrowed more than $8 million and this made the prices raise an average of 72 percent” (Robinson, 103). After the charter ran out for the first bank, it was a debate to renew it. With the conflict with the British and creating the war of 1812, of course, America needed more money and creates the second bank of America. The first and second bank were similar, they both were created to issue currency and purchase government debt.
1. | Question: | (TCO 1) Luffman Inc. owns 30% of Bruce Inc. and appropriately applies the equity method. During the current year, Bruce bought inventory costing $52,000 and then sold it to Luffman for $80,000. At year-end, all of the merchandise had been sold by Luffman to other customers. What amount of unrealized inter-company profit must be deferred by Luffman?
The business required £30,000 cash for working capital. The company gets a loan of £450,000 which was transfer into the business bank account in January as shown in appendix 6. The cash budget shows a balance of £3,918 in January and £16,335 February. The loan calculation is shown in appendix 8. This is expected to be paid back within 8 years by monthly paid instalments of £5.718.41 which was calculated on a 5.1% interest rate.
Hence, the SEC asked Kodiak Energy to perform a restatement under item 4.02 of the 8k disclosure rules. This item covers non-reliance on a previously filed financial statement and the related audit report. In accordance with the SEC’s request, Kodiak Energy put in a notification of late filing for their 2008 fiscal report and corrected for the transaction errors in March 2009. After the error adjustments, the restated financial reports showed an overall increase of 3.5 million dollars in the reported acquisition cost and related issuance of common shares. After the fiasco surrounding the acquisition of the Thunder River assets, shareholders lost faith in Kodiak Energy.