Parent company X and subsidiary company Y file a calendar year consolidated federal income tax return. Company X reported a $120,000 tax loss, which included a $10,000 dividend from Y. Company Y reported $140,000 of taxable income, which included $30,000 of dividends received from less than 20% owned stock investments. Neither company took into account any applicable dividends received deduction. What is the group's consolidated tax loss for the year

Answers

Answer 1
Answer:

Answer:

The adjusted tax loss of the group is $11000

Find detailed computation in the attached spreadsheet.

Explanation:

The the tax loss of the of parent company X needs to be adjusted for inter-company dividends of $10000.By eliminating the dividends,the loss becomes $130,000.

On other hand,the profit of company Y needs to be adjusted as well for 70% dividends-received deduction,by eliminating 70% of $30000 dividends received, which amounts to $21000.

By deducting the $21000 from $140000 taxable income,taxable income drops to $119000.

On aggregation, the adjusted tax loss of parent and adjusted taxable income of subsidiary gives $11000 tax loss.


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Should the government be able to limit/regulate religious services? Explain.
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Professor Wellman is constructing a demographic questionnaire for use in aresearch project. One question asks students to report whether they are currentlyliving in an "urban," "suburban," or "rural" setting. This is an example of a/an:A. nominal scale.B. ordinal scale.C. ratio scale.D. interval scale.

Answers

Answer:

B. ordinal scale

Explanation:

  • The ordinal scale the scale of the measurement that uses the labels and classified them into an arranged orders and implying that the class must be put into such as order were one class is considered to be greater than other class.and this label exists on a four levels of measurement. as the ranking of the urban and suburban and the rural areas.

To decrease the money supply, the Federal Reserve could a. decrease the required reserve ratio. b. conduct an open market purchase of U.S. Treasury securities. c. increase the discount rate. d. forbid the reselling of U.S. Treasury securities.

Answers

Answer: c. increase the discount rate.

Explanation:

The discount rate of a country is the rate at which the central bank in that country loans money out to the financial institutions.

When this rate is low, more financial institutions will borrow money as opposed to when it is high. Banks borrowing money increases the money supply in the economy so if the Federal Reserve wants to reduce money supply, it should increase the discount rate which would dissuade banks from borrowing from the Fed thereby limiting money supply.

Colicchio Corporation acquired two inventory items at a lump-sum cost of $60,000. The acquisition included 3,000 units of knife X001, and 3,000 units of knife X002. X001 normally sells for $20 per unit, and X002 for $10 per unit. If Colicchio sells 1,000 units of X002, what amount of gross profit should it recognize?

Answers

Answer:

Explanation:

X001 Sales volum = 3000*$20 = $60,000

X002 Sales volum = 3000*$10 = $30,000

Total $90,000

Allocated to X002 based on sales volum is 33.33% (30,000/90,000) of the 60,000, which is $20,000

Cost per unit of X002 is $6.67 ($20,000/3,000). Sells 1000 units, $6.67*1000 = $6670.

Gross profit = Revenue $10,000 - Cost $6670 = $3330 in gross profit

Answer:

$3,333

Explanation:

Using the maximum revenue achievable as cost allocation basis, we can then proceed as follows:

Knife X001 maximum achievable revenue = $20 × 3,000 = $60,000

Knife X001 achievable maximum revenue = $10 × 3,000 = $30,000

Total maximum achievable revenue = $60,000 + $30,000

Weight of Knife X001 = 60,000/90,000 = 0.67

Weight of Knife X002 = 30,000/90,000 = 0.33

Total cost allocated to Knife X001 = 0.67 × 60,000 = $40,000

Total cost allocated to Knife X002 = 0.33 × 60,000 = $30,000

Unit cost of Knife X001 = $40,000/3,000 = $13.33

Unit cost of Knife X002 = $20,000/3,000 = $6.67

Revenue from Knife X002 1,000 units sold = $10 × 1,000 = $10,000

Cost of Knife X002 1,000 units sold = $6.67 × 1,000 = $6,667

Gross profit from Knife X002 1,000 units sold = $10,000 - $10,000 – $6,667 = $3,333.

Therefore, amount of gross profit which Colicchio Corporation should recognize is $3,333 if 1,000 units of Knife X002 is sold.

Cyclical unemployment arises when:______. a. the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation's food supply.
b. labor unions strike for higher wages.
c. the business cycle enters an expansionary phase.
d. business activity in the macroeconomy declines.

Answers

Answer:

D

Explanation:

types of unemployment

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.  

The geologist lost his hob permanently due to increase in wages (polices)

Frictional unemployment:  the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom  

Final answer:

Cyclical unemployment arises when business activity in the macroeconomy declines. It is directly linked to the ups and downs in the business cycle. When the economy moves into a recession, cyclical unemployment increases as businesses lay off workers.

Explanation:

Cyclical unemployment arises when: business activity in the macroeconomy declines. This is option D. It refers to the unemployment which is caused by the ups and downs in the overall economy, a phenomenon known as the business cycle. When the economy enters into a recession or contractionary phase, overall demand decreases, and businesses lay off workers as a result leading to an increase in unemployment. This is known as cyclical unemployment.

On the other hand, when the economy is in an expansionary phase, businesses are typically doing well and unemployment levels decrease as businesses hire more workers to meet the increased demand. Therefore, cyclical unemployment is directly related to the health of an economy.

Learn more about Cyclical Unemployment here:

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Define own-price elasticity of demand and explain how it is related to the demand curve. Provide four reasons why the demand for medical services is likely to be inelastic with respect to its price

Answers

Answer:



Explanation:

Own price elasticity of demand is the degree of the responsiveness of the quantity demanded due to some change in price, keeping other factor constant.  Price elasticity of demand on a linear demand curve will fall continuously as the curve slopes.

The four reasons are:

1. Medical aid is enivatble: Because medical services are a necessity for every human beings to live a healthy life, and if their is high change in price with respect to quantity demanded, person cannot ignore to take medical services in bad times or when seriously ill.

2. Comparing the actual size of the population, the number of doctors are compartively less.

3. The services of medical cannot be prolonged or postponed.

4. Love among people- One can be miser in food and clothing, but in diseases they have to take medical help and people will put in the whole money to save his closer one's life, this is the love we people have.

Columbia Construction Company earned $442,000 during the year ended June 30, 2014. After paying out $225,794 in dividends, the balance went into retained earnings. If the firm's total retained earnings were $847,935 at the end of fiscal year 2014, what were the retained earnings on its balance sheet on July 1, 2013?

Answers

Answer:

$631,729

Explanation:

The amount indicated as retained in a balance sheet is the accumulated amount of retained earning since inception.

A company's profits are shared between dividends and retained earnings.

The Columbia company made profits of  $442,000  on June 30, 2014  

Amounts paid out as dividends on June 30 were  $225,794

The retained earnings for June 2014 will be:

If net profits = retained earnings + dividends

retained earning will be earning - dividends payouts

=$442,000- $225,794

=$216,206

retained earning for June 2104  is 216,206

The accumulated retained earnings as of June 14, 2014, were $847,935,

retailed earning as of June 30, 2013, were

Accumulated retained earning by June 30, 2014 minus retained earnings earned on June 30, 2014

$847,935,-$216,206

=$631,729

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