Your client comes to you and tells you he received a distributionfrom a company - ABACO INC
Fantastic news! We've Found the answer you've been seeking!
Question:
Your client comes to you and tells you he received a "distribution"from a company - ABACO INC - that he owns stock in. He owned less than 1% of ABACO. He tells you that he was told that this $100,000 distribution was NOT a dividend to him. He tells you that he had bought the ABACO stock for $50,000. You know that he is in the HIGHEST regular tax rate -37%. He wants to know how much of this $100,000 he will pocket - net of federal income taxes? Please show your work.
Expert Answer:
Answer rating: 100% (QA)
Answer The Client can pocket the gross amount of 100000 and not ne... View the full answer
Posted Date:
Students also viewed these accounting questions
-
You are an attorney. A client comes to you and informs you that one of her business customers has stopped paying for the good delivered. The client has heard that the business may be going under. How...
-
Accounting Your client comes to you after receiving an inheritance of $2,000,000. They are not sure what to do with this $2 million dollars. They have come to you for advise. Should they invest in...
-
As a manager, an employee comes to you and tells you that he has a hunch that one of the other employees is probably gay. What do you do?
-
R. Bright, an electrical goods wholesaler, has three departments: (a) Music, (b) TV and (c) Kitchen. The following is a summary of Brights sales invoices during the week 1 to 7 February 2013. (a)...
-
Answer the below questions. a. Explain whether you agree or disagree with the following statement: It is the covariance not the correlation that is important in the mean-variance model for portfolio...
-
As indicated in the text, both financial and nonfinancial performance indicators play important roles in an organizations overall operational control system. Explain, concisely, the relative...
-
For each of the following sets of numbers, calculate a \(95 \%\) confidence interval for the mean ( \(\sigma\) not known); before going through the steps in calculating the confidence interval, the...
-
The following is the ending balances of accounts at December 31, 2018 for the Vosburgh Electronics Corporation. Additional Information: 1. The common stock represents 1 million shares of no par stock...
-
(a) Consider a put option on a non-dividend paying stock when the stock price is 4.50, the exercise price is 5.00, the continuously compounded rate of return is 3.5% per annum, the volatility is 18%...
-
What are the four kinds of resources?
-
Describe three to five benefits of using a Security Information and Event Management (SIEM) system, such as Splunk, for analyzing and correlating network monitoring data for the purpose of preventing...
-
ces Chuck Wagon Grills, Incorporated, makes a barbecue grill it sells for $210. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending...
-
An aqueous solution of sodium hydroxide contains 20% NAOH by mass. It is desired to produce an 8.0% NaOH solution by diluting a stream of the 20% solution with a stream of pure water. Calculate the...
-
A reverse osmosis membrane unit concentrates a liquid food from 10 to 20% total solids by selectively removing water. If 100 lb/hr of feed is input to the membrane, how much concentrated product is...
-
8-23 A synthesis gas consists of 40 percent CO and 60 percent H, by volume. Determine it's higher and lower heating values. The higher and lower heating values of hydrogen are 141,800 kJ/kg and...
-
A chemist adds 280.0 mL of a 2.2 mol/L iron(II) bromide (FeBr2) solution to a reaction flask. Calculate the mass in kilograms of iron(II) bromide the chemist has added to the flask. Round your answer...
-
When reading words using a Scanner object's next method... ...the caller must discard white space characters at the beginning of the input before calling the next method. ..any characters that are...
-
Identify the Critical Infrastructure Physical Protection System Plan.
-
A response to the IASB's Exposure Draft 2009/5 Fair Value Measurements, stated: In practical terms we doubt that an asset measured on any other basis than its intended use will provide more useful...
-
Palm Ltd acquired a business that used a large number of assets that worked in combination to produce a product saleable in offshore markets. The assets of the business include a computer program...
-
In a business combination, Skyentist Ltd acquired inventory that is sold in three different markets: Market A, Market \(B\) and Market C. Some information gathered in relation to these three markets...
Study smarter with the SolutionInn App