Thunder Inc. (a C corporation) has invested in the stock of several other corporations.In the current year, Thunder received dividend income from these corporations asdescribed in the table below:CORPORATIONHAIL, INC. $OURAGAN, S.A. $LIGHTENING, INC. $TORNADO CORP. $DIVIDENDRECEIVED。 $0o $26,980o $33,105o $44,480o $203,30052,00017,5002,800131,000OWNERSHIP%14%62%41%92%PLACE OFINCORPORATIONDelawareFranceutahNew JerseyHow much will Thunder's current year taxable income increase as a resulkt of thesedividends?

Certain corporations that receive dividends from related organizations in the US are eligible for a…

Answered: Thunder Inc. (a C corporation) has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A corporation reported net sales of $360,000, net income of $20,000, average stockholders' equity of $1,000,000, and average common shares outstanding of 10,000 . It paid $4,000 of dividends to preferred stockholders. How much was its eamings per share? $4.00 $1.60 $16.67 $2.67 $0.06
G
A corporation using the equity method of accounting for its investment in a 40% owned investee,which earned $20,000 and paid $5,000 in dividends ,the debit side of recording the income from subsidiary will be Select one: a. no entry b. investment c. income d. cash
World Enterprises is determined to acquire Intous Ltd through exchanging stocks. World Enterprises is offering R65 per share for Intous ltd. You are given the following information World Enterprises Intous Ltd Net Income R50 R10 Shares outstanding 5000 2000 Earnings per share R10 R5 Market price per share R150 Price earnings ratio R15 a. Calculate the number of shares to be issued by Intous Ltd: b. Calculate combined earnings per share of both World Enterprise and Intous Ltd c. Calculate price earnings ratio (P/E ratio) paid (Hint: use the R65 to calculate the P/E ratio) d. Compare the current and paid P / E ratios
3. Earnings and Profits. A distribution is made when D, Inc. has assets valued at $500,000 (basis of $300,000), E&P of $80,000, and 10,000 shares of stock out-standing. T receives assets valued at $100,000 (basis of $60,000) for all his D stock (2,000 shares with a basis of $25,000). Compute the corporation’s E&P balance after the exchange if it is treated as (a) a dividend, or as (b) a sale.
9
Ma3. Investor owns 10% of Investee shares and has the ability to exert significant influence. In 2022 Investee reported net income of $800,000 and paid cash dividends of $120,000. 1.. If Investor uses the indirect method to present the activities operational: a. It will add $80,000 b. It will add $12,000 c. Will subtract $68,000 d. It will add $68,000 2. If Investor uses the direct method to present the activities operational: a. It will add $80,000 b. It will add $12,000 c. Will subtract $68,000 d. It will add $68,000
The following information is available for Splish Brothers Inc. and Novak Corp.: Splish Brothers Inc. Novak Corp. (in millions) 2022 2021 2022 2021 Preferred dividends 22 9 27 Net income 545 475 515 565 Shares outstanding at the end of the 215 175 160 195 year Shares outstanding at the beginning of 175 160 195 215 the year Based on this information, what is the amount of Splish Brothers Inc. earnings per share (rounded to two decimals) for 2022? O $ 1.50 O $ 1.34 O $ 2.94 O $ 2.68
of stion Paid-in capital consists of: O b. O c. O d. earnings generated by the corporation. capital raised by issuing bonds. amounts paid by customers. amounts received from stockholders. Bradley Corporation issued 10,000 shares of common stock on 101. par and was
Choose the letter of the correct answer. How much is the total assets, liabilities and shareholder' equity of Tom Corporation? (check the picture attached) a. Asset = P 326,000; Liabilities = P 130,000; Shareholder's equity = P 196,000 b. Asset = P 320,000; Liabilities = P 136,000; Shareholder's equity = P 184,000 c. Asset = P 200,000; Liabilities = P 70,000; Shareholder's equity = P 130,000 d. Asset = P 326,000; Liabilities = P 180,000; Shareholder's equity = P 146,000
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