Leila owns 14% of the ordinary share of Datafarm Ltd. Assume dividends from Datafarm is the only incomeLeila has and she has no savings.In early March, 2020, Datafarm Ltd reported net profits after tax of $1,000,000 for the year, 2019 (1 January to31 December, 2019), and announced due to the effect of COVID 19 Global pandemic it expects net profitsafter tax for the current year, 2020, to be 30% lower than last year's figure. The company currently has adividend payout ratio of 30%, which it will apply for the annual dividend for 2019, payable in July 2020, but itwill reduce the dividend payout ratio to 20% for the dividend for 2020, payable in July, 2021In July, 2021, Leila wishes to spend $45,000. How much can she consume in July, 2020 if the capital marketoffers an interest rate of 9% per year?

Percentage shares held by Leila=14% Net profits (after Tax) for the year 2019=$1,000,000 Dividend…

Answered: Leila owns 14% of the ordinary share of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Caesar Corporation reported income before taxes of $220,000 for the years 2020, 2021, and 2022. In 2023 they experienced a loss of $220,000. The company had a tax rate of 35% in 2020 and 2021, and a rate of 45% in 2022 and 2023. Assuming Caesar uses the carryback provisions for the net operating loss, by what amount will the income tax benefit reduce the net loss in 2023? Group of answer choices $88,000 $77,000 $99,000 $220,000
In 2020, Packer Corporation reports gross profits of $200,000, deductible expenses of $30,000, and a net capital loss of $12,000. Vance reported the following capital gain net income: 2016: $3,000, 2017: $0, 2018: $4,000, and 2019: $5,000. What amount of Packer’s net capital loss is carried forward to 2021? Please answer with good explanation and do not copy others. Thx
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This year, Sooner Company reports a deficit in current E&P of ($304,000). Its accumulated E&P at the beginning of the year was $220,000. Sooner distributed $440,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer's tax basis in his Sooner stock before the distribution is $86,000. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) c. What is Sooner's balance in accumulated E&P on the first day of next year? Balance in accumulated E&P at the beginning of next year
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Below are the taxable profits and losses for the past few years along with the tax rates on income reported for Olive Company. Income Tax Rate $100,000 $20,000 $100,000 ($250,000) $85,000 2016 35% 2017 35% 2018 35% 2019 20% 2020 20% 2021 unknown 20% Olive elects to use both carry back and carry forward procedures with no valuation allowance and strongly anticipates future profits to recover losses. а. Record the tax effect of the above for 2019 b Show the income tax section and loss section of the income statement for 2019 с. Record the tax effect of the above for 2020
What amount of loss/gain from investments should Sofia report in 2021 income statement?* Sofia had investments in equity securities costing $1,000,000 that were classified as investment in fair value thru other comprehensive income. On June 30, 2021, Sofia decided to reclassify the investment as investment in fair value thru profit and loss. The investments' fair value was P985,000 at December 31, 2020 and $950,000 at June 30, 2021, and #1,500,000 at December 31, 2021. ₱ 15,000 loss ₱ 0
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