Answer:
scenario 1
owner made no investment in the business and no dividend were paid during the year,<em> there may be no income or net loss incurred by the business. there is no decrease or increase in equity.</em>
scenario 2
owner made no investments in the business but dividend were $700 cash per month, <em>the net income earned during the year equal $700*12 = $8,400.</em> <em>There is no changes in equity</em>
scenario 3
No dividend were paid during the year but owner invested an additional $45,000 cash in exchange for common stock. <em>There will be increase in equity by $45,000 but net income or net loss cannot be determined</em>
scenario 4
Dividend were $700 cash per month and the owner invested additional $35,000 cash in exchange for common stock. <em>The net Income earned will $8,400 while $35,000 will added to equity as additional capital.</em>
Explanation:
Answer:
The answer is: B) $175
Explanation:
Caroline made an income of $500 from this transaction and it should be taxed at ordinary income rate (35%).
Caroline´s taxes = $500 x 35% = $175
In order for Caroline to be taxed at 15% (capital gains rate) she should have sold a capital asset that she had owned for more than one year, but in this case she didn´t sell any stock.
Answer:
a. cannot be purchased through the IPO.
Explanation:
The Financial Industry Regulatory Authority (FINRA) does not allow purchase of IPO stock by insiders.
It states that no FINRA member firm should sell IPO shares to an account where a restricted person has an interest.
Restricted persons are defined as anyone that is employed by a broker or their immediate family.
So the spouse of the registered representative cannot be given an allocation in the IPO share sale.
True,
When goods are sold, the company has to take into account all aspects of the product being made in order to make profit off of it.
