The Board of Directors of the Reliable Corporation is discussing on declaring a dividend to its shareholders. However, corporation does not have lots of cash available, but the Board of Directors strongly believe that they need to find a way to declare some sort of dividend.
Provide details of the various types of dividends that the Board of Directors can issue. Since the corporation does not have enough cash, should it borrow cash to satisfy the issuance of a certain type of dividend? Give a well-reasoned and detailed argument of which type of dividend should the corporation declare. And why? Provide any additional details that would solidify your point of view(s).
Determine the amount of the dividends received deduction in each of the following instances. In all cases, the net income figure includes the full dividend. Use Dividends deduction table.
- a. Dividend of $15,500 from a 45% owned corporation; taxable income before DRD of $66,500.
- b. Dividend of $22,300 from a 15% owned corporation; taxable income before DRD of $86,000.
- c. Dividend of $17,000 from a 60% owned corporation; taxable income before DRD of $9,400.
- d. Dividend of $5,500 from a 10% owned corporation; taxable income before DRD of $4,600.
Deduction table Ownership less than 20% equates 50% deduction
Ownership 20% less than 80% equates 65% deduction Ownership 80% and more equates 100% deduction
Marathon Inc. (a C corporation) reported $1,250,000 of taxable income in the current year. During the year, it distributed $125,000 as dividends to its shareholders as follows: (New Corporate income tax rate has been mentioned as “21% on all taxable income” as per the recent change. Leave no answer blank. Enter zero if applicable.)
• $6,250 to Guy, a 5 percent individual shareholder. • $18,750 to Little Rock Corp., a 15 percent shareholder (C corporation). • $100,000 to other shareholders.
a. How much of the dividend payment did Marathon deduct in determining its taxable income? b. Assuming Guy’s marginal ordinary tax rate is 37 percent, how much tax will he pay on the $6,250 dividend he received from Marathon Inc. (including the net investment income tax)? c. What amount of tax will Little Rock Corp. pay on the $18,750 dividend it received from Marathon Inc. (50 percent dividends received deduction)? (Round your final answers to the nearest whole dollar amounts.)
Spurs Corporation owns 2% of LaMarcus Corp. stock. LaMarcus distributed a $13,822 dividend to Spurs Corporation. Spurs Corp.’s taxable income before the dividend was $105,297. What is the number of Spurs’ dividends received deduction on the dividend it received from LaMarcus Corp.?
Porter Corporation owns all 35,000 shares of the common stock of Street Inc. Porter has 70,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $182,000 while Street reports $159,000. Annual amortization of $12,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $34,000 for Porter and $43,000 for Street Porters bonds can be converted into 10,000 shares of common stock; Streets bonds can be converted into 15,000 shares. Porter owns none of these bonds.
What are the earnings per share amounts that Porter should report in its current year consolidated income statement? (Round your answers to 2 decimal places.)
Basic
Earnings r Share:
$ 4.70
Diluted
1.Do you agree that a firm may be extremely profitable and still be cash poor? Why or why not? 2.Explain this statement: firms with abundant investment opportunities often have relatively low dividend payout ratios. 3.How could ownership control constrain the growth of a firm? 4.Discuss how the concept of signaling is related to dividend policy. 5.Explain the impact that the issue of dividends may have on a company’s share price. 6.Identify factor that Influence Dividend Policy in Ethiopia??
I. All companies make adjusting entries. Review your selected company' s annual report and answer the following questions in the 4.3 Discussion: Adjusting Entries forum:
- Find a line item listed on either the income statement or balance sheet that would indicate an adjusting entry was necessary and describe the entry.
- What do you think the effect would be on the company' s financial statements if the adjustment was not made? Be specific. Name the statement, the category or accounts, and whether it would have increased or decreased.
II. Read the posts of your classmates on their selected companies and reply to at least two of your peers.
Review the rubric that will be used to evaluate this assignment.
Important Note:
Please make sure to present the accounting data in all your post using proper accounting format.
Accounting data should be presented in columns and rows. If you not sure, just look how the data is displayed in the financial statements, and always start with most present year for Example:
2014 2013 2012 2011
Sales 554,345 543,300 490,600 494,200
Net Income 344 325 310 320
This format make is easier for you to see how the organization/company is performing.
Always get the data from the annual report of the company as it will be the best source. There are also so many notes in the annual report that explain the changes in profits, sales …etc.
If you do not follow the format you will be graded accordingly. All have to follow the standards.
Question 1
Erin Danielle Company purchased equipment and incurred the following costs.
Cash price$24,000
Sales taxes1,200
Insurance during transit200
Installation and testing400
Total costs$25,800
What amount should be recorded as the cost of the equipment?
Question 2
Depreciation is a process of:
Question 3
Micah Bartlett Company purchased equipment on January 1, 2010, at a total invoice cost of $400,000. The equipment has an estimated salvage value of $10,000 and an estimated useful life of 5 years. The amount of accumulated depreciation at December 31, 2011, if the straight-line method of depreciation is used, is:
Question 4
Ann Torbert purchased a truck for $11,000 on January 1, 2010. The truck will have an estimated salvage value of $1,000 at the end of 5 years. Using the units-of-activity method, the balance in accumulated depreciation at December 31, 2011, can be computed by the following formula:
Question 5
Jefferson Company purchased a piece of equipment on January 1, 2011. The equipment cost $60,000 and had an estimated life of 8 years and a salvage value of $8,000. What was the depreciation expense for the asset for 2012 under the double-declining-balance method?
Question 6
When there is a change in estimated depreciation:
Question 7
Able Towing Company purchased a tow truck for $60,000 on January 1, 2011. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $12,000. On December 31, 2013, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2013) and the salvage value to $2,000. What was the depreciation expense for 2013?
Question 8
Additions to plant assets are:
Question 9
Bennie Razor Company has decided to sell one of its old manufacturing machines on June 30, 2011. The machine was purchased for $80,000 on January 1, 2007, and was depreciated on a straight-line basis for 10 years assuming no salvage value. If the machine was sold for $26,000, what was the amount of the gain or loss recorded at the time of the sale?
Question 10
Maggie Sharrer Company expects to extract 20 million tons of coal from a mine that cost $12 million. If no salvage value is expected, and 2 million tons are mined and sold in the first year, the entry to record depletion will include a:
Question 11
Which of the following statements is false?
Question 12
Martha Beyerlein Company incurred $150,000 of research and development costs in its laboratory to develop a patent granted on January 2, 2011. On July 31, 2011, Beyerlein paid $35,000 for legal fees in a successful defence of the patent. The total amount debited to Patents through July 31, 2011, should be:
Question 13
Indicate which of the following statements is true.
Question 14
Lake Coffee Company reported net sales of $180,000, net income of $54,000, beginning total assets of $200,000, and ending total assets of $300,000. What was the company' s asset turnover ratio?
Question 15
Schopenhauer Company exchanged an old machine, with a book value of $39,000 and a fair market value of $35,000, and paid $10,000 cash for a similar new machine. The transaction has commercial substance. At what amount should the machine acquired in the exchange be recorded on Schopenhauer' s books?
Question 16
In exchanges of assets in which the exchange has commercial substance:
Summary:
The nature of the concert requirements and accompanying reports is expose students to musical experiences to which they are for the most part unfamiliar. Attendance to two concerts is required, however I cannot stress that by no means should you feel limited to only two. I can only accept two written reports due in part to the volume of students in this class, however nobody should feel limited to exploring all the various “musical” activities that Los Angeles has to offer. I would that the two concerts are different in genre (rock, jazz, folk, classical solo, orchestral, band, opera, modernism, etc.) This provides students with the widest and most lucrative experience this class has to offer. Mind you I consider concert attendance to be the single most important component of this class so be sure not to procrastinate and to complete the requirement in a timely manner.
As to the nature of the essay itself: This is not a research paper, nor is any source material expected or necessary. Rather this is a “personal” perspective on your own subjective experience at the various musical event you choose to write about. Not all events are equal, and some events may provide more capacity for written exploration than others. I would like to insist on at least a full page of writing (double-spaced, 12pt font, etc…. (standard collegiate style essay parameters). The content is to be purely “subjective”. This is to reflect your individual experience only…. nothing more, nothing less.
Sometimes a musical experience affects us emotionally, sometimes visually. It would not be improper to write a short story elected upon the experience…. perhaps one that has absolutely nothing to do specifically with the music itself, but visual imagery “inspired” by the music. This would also be acceptable.
Certainly, the more you explore and have fun with the inner reflections of the emotional and intellectual psyche, the more you will get out of this assignment and the happier I will be. I refuse to put an upper limit in terms of length as that would be countering the “creative” process which I am hoping to nurture. The DUE DATES for both reports will be the last day of class.
You may submit either up to that time via this link. I will read through and grade submitted assignments at various times over the semester. Grades will appear in Moodle as I assign them.