the balance sheets of par ltd and sub ltd on december 31 year 1 are as follows
/in Uncategorized /by LizThe fair values of the identifiable net assets of Sub on December 31, Year 1, are as follows:
in 2015 andrewcontributedequipment with an adjusted basis of 20000 and a fmv of 18000 to construction limited partnership clp in r
/in Uncategorized /by LizInterest…………………………….$ 500
Java or C++
/in Uncategorized /by Lizas attached
you are analyzing the dividend policy of conrail a major railroad and you have collected the following information from the past five years/
/in Uncategorized /by LizThe average debt ratio during this period was 40%, and the total non-cash working capital at the end of 1990 was $10 million.
a. Estimate how much Conrail could have paid in dividends during this period.
b. If the average return on equity during the period was 13.5% and Conrail had a beta of 1.25, what conclusions would you draw about their dividend policy? (The average Treasure bond rate during the period was 7%, and the average return on the market was 12.5% during the period.)
Corporate TAX homework problems. Need help with solving. email is [email protected] Notes Ch1 corporations Complete the problems as presented in this document. You…
/in Uncategorized /by Liz[email protected] Notes Ch1 corporations Complete the problems as presented in this document. You may create a new document and/or spreadsheet as needed. Any memo should be no more than 3 pages in length. Please state any assumptions used if problems are not clear. Problem 1 Your client, a physician, recently purchased a yacht on which he flies a pennant with a medical emblem on it. He recently informed you that he purchased the yacht and flies the pennant to advertise his occupation and thus attract new patients. He has asked you if he may deduct as ordinary and necessary business expenses the costs of insuring and maintaining the yacht. In search of an answer, consult RIA’s CHECKPOINT TAX available on-line through the SNHU Shapiro Library. Explain the steps taken to find your answer. Problem 2 Stacey Small has a small salon that she has run for a few years as a sole proprietorship. The proprietorship uses the cash method of accounting and the calendar year as its tax year. Stacey needs additional capital for expansion and knows two people who might be interested in investing. One would like to practice hairdressing in the salon. The other would only invest. Stacey wants to know the tax consequences of incorporating the business. Her business assets include a building, equipment, accounts receivable and cash. Liabilities include a mortgage on the building and a few accounts payable, which are deductible when paid. Write a memo to Stacey explaining the tax consequences of the incorporation. As part of your memo examine the possibility of having the corporation issue common and preferred stock and debt for the shareholders’ property and money. Problem 3 Five years ago, Lacey, Kaylee, and Doug organized a software corporation, DLK, which develops and sells Online Meetings software for businesses. DLK is a C corporation. Each individual contributed $10,000 to the company in exchange for 1,000 shares of DLK stock (for a total of 3,000 shares). The corporation also borrowed $250,000 from ACME Venture Capital to finance operating costs and capital expenditures. Because of intense competition, DLK struggled for the first few years of operation and the corporation sustained chronic losses. This year, Lacey, DLK’s president, decided to seek additional funds to finance DLK’s working capital. CME declined to extend additional funds because of the money already invested in DLK. High Tech Venture Capital Inc. proposed to lend DLK $100,000, but at a 10% premium over the prime rate. (Other software manufacturers in the same market can borrow at a 3% premium.) First Round Capital proposed to invest $50,000 of equity capital into DLK, but on the condition that the investment firm be granted the right to elect five members to DLK’s board of directors. Discouraged by the “high cost” of external borrowing, Lacey decides to approach Kaylee and Doug. Lacey suggests to Kaylee and Doug that each of the three original investors contribute an additional $25,000 to DLK in exchange for five 20-year debentures. The debentures will be unsecured and subordinate to ACME’s debt. Annual interest on the debentures will accrue at a floating 5% premium over the prime rate. The right to receive interest payments will be cumulative; that is each debenture holder is entitled to past and current interest payments before DLK’s board can declare a common stock dividend. The debentures would be both nontransferable and noncallable. Lacey, Kaylee and Doug have asked you, their tax accountant, to advise them on the tax implications of the proposed financing agreement. After researching the issue, issue your advice in a tax research memo. At a minimum, you should consult the following authorities: • IRC. Sec 385 • Rudolph A. Hardman, 60 AFTR 2d 87-5651, 82-7 USTC ¶9523 (9th Cir., 1987) • Tomlinson v. The 1661 Corporation, 19 AFTR 2d 1413, 67-1 USTC ¶9438 (5th Cir., 1967) Problem 4 Which of the following groups constitute a controlled group? (Any stock not listed below is held by unrelated individuals each owning less than 1% of the outstanding stock.) For brother-sister corporations, which definition applies? a. Mark owns 90% of the single classes of stock of Hot and Ice Corporations. b. Johnson and Carey Corporations each have only a single class of stock outstanding. The two controlling individual shareholders own the stock as follows: Stock Ownership Percentages Shareholder Johnson Corp. Carey Corp David 60% 80% Kelly 30% 0% c. Red, Blue and ABC Corporations each have a single class of stock outstanding. The stock is owned as follows: Stock Ownership Percentages Shareholder Blue Corp. ABC Corp Red 80% 50% Blue 40% Red Corporation’s stock is widely held by over 1,000 shareholders, none of whom owns directly or indirectly more than 1% of Red’s stock. d. Helm, Oak, Walnut and Zinnia Corporations each have a single class of stock outstanding. The stock is owned as follows: Stock Ownership Percentages Shareholder Helm Corp. Oak Corp Walnut Corp Zinnia Corp James 100% 90% Helm 80% 30% Walnut 60% Problem 5 Eric and Denise are partners in ED Partnership. Eric owns a 60% capital, profits and loss interest. Denise owns the remaining interest. Both materially participate in the partnership activities. At the beginning of the current year, ED’s only liabilities are $50,000 in accounts payable, which remain outstanding at year-end. In August, ED borrowed $120,000 on a nonrecourse basis from Delta Bank. The loan is secured by property with a $230,000 FMV. These are ED’s only liabilities at year-end. Basis for the partnership interest at the beginning of the year is $40,000 for Denise and $60,000 for Eric before considering the impact of liabilities and operations. ED has a $200,000 ordinary loss during the current year. How much loss can Eric and Denise recognize? Problem 6 Linda pays $100,000 cash for Jerry’s ¼ interest in the JILL Partnership. The partnership has a Sec. 754 election effect. Just before the sale of Jerry’s interest, JILL’s balance sheet appears as follows: Partnership’s Basis FMV Assets: Cash $75,000 $75,000 Land $225,000 $325,000 Total $300,000 $400,000 Partners’ capital Jerry $75,000 $100,000 Instrument Corp $75,000 $100,000 Logo Corp $75,000 $100,000 Lighthouse Corp $75,000 $100,000 Total $300,000 $400,000 a. What is Linda’s total optional basis adjustment? b. If JILL Partnership sells the land for its $325,000 FMV immediately after Linda purchases her interest, how much gain or loss will the partnership recognize? c. How much gain will Linda report as a result of the sale? Problem 7 Monte and Allie each own 50% of Raider Corporation, an S corporation. Both individuals actively participate in Raider’s business. On January 1, Monte and Allie have adjusted bases for their Raider stock of $80,000 and $90,000 respectively. During the current year, Raider reports the following results: Ordinary loss $175,000 Tax-exempt interest income 20,000 Long-term capital loss 32,000 Raider’s balance sheet at year-end shows the following liabilities: accounts payable, $90,000; mortgage payable, $30,000; and note payable to Allie, $10,000. a. What income and deductions will Monte and Allie report from Raider’s current year activities? b. What is Monte’s stock basis on December 31? c. What are Allie’s stock basis and debt basis on December 31? d. What loss carryovers are available for Monte and Allie? e. Explain how the use of the losses in Part a would change if instead Raider were a partnership and Monte and Allie were partners who shared profits, losses and liabilities equally. Problem 8 Tom Hughes died in 2009 with a gross estate of $3.9 million and debt of $30,000. He made post-1976 taxable gifts of $100,000, valued at $80,000 when he died. His estate paid state death taxes of $110,200. What is his estate tax base?
Express each set using set-builder-notation.use inequality notation to express the condition. {61, 62, 63, 64,…}
/in Uncategorized /by Lizwho the heck is beytovan
/in Uncategorized /by Lizmarys mother was dismayed her daughter had just been brought home by a city detective mary has been arrested at the bank where she had been working for
/in Uncategorized /by LizRequired
Should Mary have known better? Does an organization, such as the bank where Mary worked, have any obligation to explain the control environment of a job to an employee?
Earnings per share of common stock
/in Uncategorized /by LizI need the answers and formulas for:
-Earings per share of common stock
-Price Earnings ratio
-Book value per share of common stock
Note – company does not have perfered shares, only common.
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