Kindly help me with general accounting question David Smith owns 50,000 shares of XYZ Corporation.XYZ's stock is currently trading at $25 per share,making his investment worth $1,250,000. Smith hasopted to participate in the company's dividendreinvestment program (DRIP), where all dividends areautomatically reinvested to purchase additionalshares. If XYZ declares a dividend of $0.75 per share,and assuming Smith reinvests at the ex-dividendprice, his new share ownership would be closest to:A. 51,450 sharesB. 51,500 sharesC. 51,750 shares

Step 1: Define Dividend Reinvestment Program (DRIP)A Dividend Reinvestment Program (DRIP) allows…

Answered: David Smith owns 50,000 shares of XYZ…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter13: Corporations: Earning & Profits And Distributions

Section: Chapter Questions

Problem 31P

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ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC distributes, to its shareholders, the shares of XYZ in the form of a dividend. This distribution is an example of a dividend: a. in stock (stock dividend). b. owned (property dividend). c. in liquidation (liquidating dividend).
Sophie chan owns...accounting question please solve
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Check my answer. Kaiwan, Inc., a calendar year S corporation, is partly owned by Sharrod, whose beginning stock basis is $32,000. During the year, Sharrod’s share of a Kaiwan long-term capital gain (LTCG) is $5,000, and his share of an ordinary loss is $18,000. Sharrod then receives a $20,000 cash distribution. Compute the following. A Sharrod’s deductible loss. Beginning Basis 32000 Add Long -term cap gain 5000 37000 Less Distribution -20000 Basis for loss limitation purp 17000 Deductible loss 17000 B Sharrod’s suspended loss. Share of loss 20000 Deductible loss -17000 Suspended loss 3000
ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC distributes, to its shareholders, the shares of XYZ in the form of a dividend. This dividend must be recorded in ABC's books for: a. the market value of XYZ stock. b. the market value of ABC shares. c. the book value of XYZ stock.
Adam purchases 1,200 shares of Beta Inc. at $22 per share [inclusive of commissions] and sells them after 1 year, during which time the stock also pays a dividend. The following information is also available: Sale price = $25 Leverage ratio = 1.5 Call money rate = 5% Dividend = $0.20 per share Commission = $0.03 per share Maintenance margin = 20% Assume that the interest on the loan and the dividend are both paid at the end of the year. Adam’s return on this investment is closest to: 18.52% 19.35% 22.39% 24.52% 28.52%
Given that Local Care, Inc.'s stock is currently selling for $65 a share, calculate the amount of money that Elijah Pearson will make (or lose) on each of the following transactions. Assume that all transactions involve 100 shares of stock, and ignore brokerage commissions. Input all answers as positive values. He short-sells the stock and then repurchases the borrowed shares at $85.Total of $ . He buys the stock and then sells it some time later at $85.Total of $ . He short-sells the stock and then repurchases the borrowed shares at $50.Total of $ .
Body Armor Ltd. states that it will pay a $60 per dividend next year, followed by a final dividend of $30 per share in the year after. Mrs. Emily Rodd has 50 shares in Body Armor Inc. She wishes to limit her income from investments to no more than $20 in the first year. Demonstrate through relevant computations, how she can achieve this goal through homemade dividends if the required return on Body Armor Ltd’s shares is 9%. What will the earnings be for Mrs. Rodd’s in the second year? Show detailed workings in support of your response
Check my work Kaiwan, Inc., a calendar year S corporation, is partly owned by Sharrod, whose beginning stock basis is $32,000. During the year, Sharrod’s share of a Kaiwan long-term capital gain (LTCG) is $5,000, and his share of an ordinary loss is $18,000. Sharrod then receives a $20,000 cash distribution. Compute the following. What is Sharrod’s new basis in the Kaiwan stock? Beginning Basis 32000 Add Long -term cap gain 5000 Less Distribution -20000 Deductible loss -17000 Basis in stock 0 Stock basis is 0
Can you please answer the financial accounting question?
(b) Assume that the stock acquired by Ball represents 30% of Leftwich's voting stock and that Ball accounts for this investment using the equity method since it is able to exert significant influence. Use the financial statement effects template (with amounts and accounts) to record the following transactions: (1) Ball purchased 10,000 common shares of Leftwich at $15 cash per share. (2) Leftwich reported annual net income of $40,000. (3) Ball received a cash dividend of $1.20 per common share from Leftwich. (4) Year-end market price of Leftwich common stock is $19 per share. Use negative signs with answers, when appropriate. Balance Sheet Transaction Cash Asset + 150,000 (1) (2) (3) (4) 0 0 12,000 Noncash Assets = Liabilities + 150,000 12,000 (12,000) 0 0 0 0 0 Earned Contributed Capital + Capital 0 0 0 0 0 120,000 0 0 Revenue Income Statement 0 12,000 0 0 Expenses 0 0 0 0 Net Income 0 12,000 0 0
Wilson acquires 1500 of the 10000 shares of Star Corp for $900,000. Wilson exerts significant control over Star. Star reports $500,000 of net income in 2022 and paid $5 per share in dividends. What amount of income will Wilson report on this investment?

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