"A customer has purchased 1,000 shares of ABC stock at $44 per share, paying a commission of $1.00 per share for the transaction. ABC stock declares a 20% stock dividend. When the dividend is paid, the tax status of the investment is:"

Answers

Answer 1

Answer:

1,200 shares held at a cost basis of $37.50

Explanation:

Since there are 1,000 shares are purchased

and the stock dividend is 20%

So the number of shares after the dividend is  

= 1,000 × (1 + dividend percentage)

= 1,000 × (1 + 0.20)

= 1,000 × 1.20

= 1.200

And, the price per share is

= $44 + $1

= $45

So, the cost basis would be

= $45 ÷ 1.20

= $37.50

hence, the tax status of the investment is 1,200 shares held for cost at $37.50 basis


Related Questions

A new landscaping company uses the same logo and shade of green in all forms of communication including its online ads, truck signage, website, and business cards. Which technique is being used by this landscaping company to promote its business

Answers

Answer:

integrated marketing communications

Explanation:

When a company uses integrated marketing communications (IMC), it will use a similar language and transmit a similar message through all its marketing efforts. I.e., when companies promote their products or services using the same message through different marketing channels (e.g. internet, t.v., printed ads, etc.)

Is the soundness of conclusions that can be drawn from an experiment?

Answers

Answer:

Validity.

Explanation:

Validity is the soundness of conclusions that can be drawn from an experiment. It is a term used to refer to how precise and accurate a method describes, estimate, and establish what it is supposed to measure or quantify at a given time.

Hence, if an experiment has a high validity, this ultimately implies that its outcome are in correspondence with the characteristics, properties, and as such it has a sound conclusion. Thus, an experiment is said to be valid when it has a great level or soundness of conclusion.

An investment banking firm has been hired to roll up various partnerships into one master limited partnership. What is the compensation limit for this activity

Answers

Answer:

2%

Explanation:

Based on the industry standards and regulations, an investment banking firm or a broker-dealer canvassing the agreements from limited partners in relation to a roll-up is outrightly limited to compensation of 2% of the value of the newly created securities.

Therefore, the correct answer, in this case, is that the compensation limit for this activity is pegged at 2 percent

"The time horizon to be used when constructing a portfolio to pay for college expenses for a person who is expected to start college in 10 years and finish college in 15 years is:"

Answers

Answer:

15 years

Explanation:

If you are constructing a portfolio to cover the education expenses of your child and you expect that he/she graduates from college in 15 years, then the time horizon of your portfolio should be 15 years since it should cover all the expenses until your child graduates. If you start a little earlier and expect your child to graduate in 20 years, the time horizon will be 20 years, or if you start a little later and expect your child to graduate in 10 year, then the time horizon is 10 years.

The process of spreading the costs of long-lived assets such as buildings and equipment over the total number of accounting periods in which they are expected to be used is called

Answers

Answer:

Depreciation

Explanation:

Depreciation is the process of reallocation of tangible assets over its useful life. Depreciation is an expense which is charged on the entire cost of a long-term tangible fixed asset. The depreciation expense is computed by reducing the scrap value of the asset from its cost and dividing it by the entire useful life of the asset. There are several methods used to depreciation tangible assets such as straight-line method, MACRS, double declining etc. Salvage value is the expected value of the asset at the end of its life. For example, if an asset has been purchased at $110,000 with a useful life of 5 years and salvage value of $10,000 then using straight-line depreciation per year over 5 years will be ($110,000-$10,000)/5 = $20,000.

Planet Earth Developers is a large nationwide construction company with home offices in Lansing, MI. The local media often remarks about the pristine landscaping that surrounds the home office that sits on a 30-acre complex. At the back end of the complex are several large warehouses and garages that hold large equipment. The grounds surrounding these warehouses look like a well-maintained park. Across the street from the garages are several shops and businesses. The CEO, "Planet Paul" (as his employees call him), often talks about how thankful he is that the town permits him to store the company equipment at that site, and vows to always maintain the premises for his neighbors (the other businesses that thrive in that area), not to mention that he asks 100 employees to come to work there everyday. What statements describes Planet Paul's business philosophy?

Answers

Answer: Planet Paul understands even though it cost a little more, the stakeholder considerations are important if one want their business to thrive.

Explanation:

The value of stakeholders to organizations cannot be underappreciated. Stakeholders are the individuals that are interested in ones company and gives ones business both financial and practical support.

Stakeholders include investors, employees, loyal customers etc. Based on the above question, Planet Paul understands even though it cost a little more, the stakeholder considerations are important if one want their business to succeed.

The 20% off sale is a better deal than the $200 rebate or $150 coupon for the $1,500 dining set. The Porters budgeted $1,250 for a new dining room set. Explain why this is the best deal for them. Are they under budget?

Answers

Answer:20% off is better and it is the only offer which is under the budget.

Explanation:Given,

The original cost of the dining set = $ 1,500,

If there is a off of 20%,

Then the discount on dinning table = 20% of 1500

= $ 300

So, the final amount of the dinning table after 20% off = 1500 - 300 = 1200 < 1250

Thus, it under the budget.

Now, in $ 200 rebate,

The new cost of the dinning table = 1500 - 200 = $ 1300 > 1250,

Thus, it is not under budget.

While, In $150 coupon,

The new cost of the dinning table = 1500 - 150 = $ 1350 > 1250,

Thus, it is not under budget.

20% off is better and it is the only offer which is under the budget.

20% off of the $1,500 dining set is $300, and the dining set price will be 1500 - 300 = $1200.

And by applying the $150 coupon, the dining set price will be $1500 - $150 = $1350.

Therefore 20% off is better and it is the only offer which is under the budget.

What is problem-solving?

Problem-solving is the act of defining a problem; figuring out the purpose of the trouble; identifying, prioritizing, and selecting alternatives for an answer; and imposing an answer.

What are problem-solving and examples?

Problem-solving starts with identifying the issue. As an example, a trainer may need to parent out a way to improve a scholar's overall performance on a writing talent test. To do that, the instructor will overview the writing exams looking for regions for improvement.

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Recently, Darlene has found that they have begun to reach market saturation. She is having trouble finding new customers. One solution would be to increase the company's reach, perhaps by opening up locations in other areas. However, she knows this will be expensive. After noticing that many of their customers are planning on expanding and purchasing bigger facilities, Darlene feels that the best option is to increase the company's

Answers

Answer: a. share of customer

Explanation:

Share of Customer refers to the proportion of the total amount that a company gets out of money that a customer will spend in a certain category.

In other words, a company that has a greater share of customer from a particular customer will see that customer spend more of their money on them.

Share of Customer is improved by excellent working relationships with customers such that they will be loyal to you. Darlene should therefore strive for this so that their customers who are planning on more expansion will keep coming back to Darlene's company and spending more and more on them.

Waste includes any misuse of resources, such as the overuse of services or other practices that directly or indirectly result in unnecessary costs to the Medicare Program. Choose one answer. a. True b. False

Answers

Answer:

True

Explanation:

A restaurant has been operating in the same location for decades. However, a
new restaurant opens across the street and sells very similar food. Both
restaurants try to win over customers by lowering prices and creating new,
innovative dishes. Which element of the free enterprise system does this
situation best reflect?
A. Competition
B. Limited role of the government
C. Individual freedom for producers
D. Profit motive

Answers

Competition

Is the correct answer as shown in the image below.

The element of the free enterprise system reflected here is competition. Therefore, the correct answer is option is A.

What is competition?

Competition refers to a situation in which individuals or organizations strive to gain an advantage over others. In a market economy, competition is the driving force behind innovation and economic growth. It is an essential element of the free enterprise system as it allows producers to improve their products and services while keeping prices reasonable.

The two restaurant lowered prices and created new and innovative dishes. They did so to get ahead of their competition.

Thus, the element of the free enterprise system reflected here is competition. Therefore, the correct answer is option is A.

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Any factor that can change

Answers

The things that change in an experiment are called variables. A variable is any factor, trait, or condition that can exist in differing amounts or types. An experiment usually has three kinds of variables: independent, dependent, and controlled.

a factor which can be changed in a experiment. ... all factors which remain the same for each repeated trial for all levels of the independent variable

The employees at Herby Financial often complain that they are not provided feedback about their work. They feel that they do not get proper information as to how they have performed and the areas in which they need to improve. They also claim that the performance goals are vague and not measurable. Which HR function does Herby Financial need to specifically improve upon to resolve the complaints put forth by its employees

Answers

Answer:

The right approach will be "Performance management".

Explanation:

Performance management seems to be an instrument of organizational practice that lets management teams regulate as well as assess the productivity of employees. It aims to create an enabling atmosphere in which employees could perhaps accomplish maximum quickly and safely to the highest possible standard to deliver the highest-quality research.

"The principle stating that asset and liability measurements should be based on the amount given or received in the original transaction is referred to as the"

Answers

Answer:

Historical cost

Explanation:

historical cost can be defined as the measure of value used in accounting and that is the value of an asset on a balance sheet.

Historical cost is used for assets that are fixed in the United states of America. Cheers

If total utility (TU) is rising as more salsa is consumed, we can definitely say that marginal utility (MU) is:

Answers

Answer:

D) greater than zero.

Explanation:

Here are the options to the question :

A) constant.

B) falling.

C) rising.

D) greater than zero.

Total utility is the total satisfaction derived from consuming a good or service.

Marginal utility is the change in total utility as a result of an increase in consumption

Marginal utility can either be increasing , decreasing or remain constant depending on the changes in total utility

If total utility is increasing, then marginal utility must be greater than zero

Please check the attached image for a table showing how marginal utility changes based on how total utility changes

A formal agreement between separately owned and controlled facilities to officially coordinate and share certain activities is most appropriately referred to as

Answers

Answer:

An affiliation

Explanation:

An affliation in management refered to act of associating, this could be a former agreement on a particular projects, whereby there is agreement between the partners to carry out a certain activities and how it's officially coordinated. It usually employed among organizations.

Therefore, from the question Formal agreement between separately owned and controlled facilities to officially coordinate is known as an affiliation

A _____ is a written document with detailed specifications that is used to request bids for equipment, supplies, or services from vendors.

Answers

The answer is a request for proposal

If this helps mark me the brainiest please and thank you

which piano is the best for beginners? List 5 best pianoes.​

Answers

Answer:

1:Yamaha YPT-269

2:Casio PX-770

3:Korg EK-50

4:Roland

5:Go:keys

Answer:

1. Yamaha P-45

2. Yamaha YDP-S34

3. Casio PX-770

4. Korg B1SP

5. Roland RP102

Explanation:

In the context of behavioral economics, the belief that outcomes that have not occurred in the recent past are more likely to occur soon, and that recent outcomes are unlikely to be repeated in the near future is best referred to as the ________ fallacy.

Answers

Answer:

Gamblers.

Explanation:

This is a belief by a certain people from a school of thought that something is likely to or not occur and this is seen to happen within a period of time. This belief carriers the said person to keep in line or stop within this period in his endeavours towards a particular goal or work. This is seen in human which try their chances a lot in gambling in the likes of casinos etc and also human to human risk. This fallacy can be seen when a team has won the coin toss for the last three games. So, they are definitely going to lose the coin toss tonight. Also the last time they spun the wheel, it landed on 12. So, it won't land on 12 this time.

WILL GIVE BRAINLY!!!!!!!!

A shift in demand may occur within a community in all of the following cases, except a change in __________.

A. birthrate
B. immigration
C. political leadership
D. age demographic

Answers

Answer:

C. political leadership

Explanation:

A shift in the demand curve occurs in many cases except for a change in political leadership.

What do you mean by demand?

Demand refers to the ability, or willingness to buy a product, goods, or services.

A change in birthrate, immigration, and age demographic are the reasons for shifting in demand but a change in political leadership does not affect the demand.

Therefore, C is the correct option.

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HELP MEE
What is a possible style of formatting your company could prefer?
A. Justification
B. Sans serif
C. TXS
D. MLA
SUBMIT

Answers

MLA is your answer.(D)

Answer: MLA

Explanation:

AP3X

pog

A(n) ________ underwrites new issues of securities for corporations, states, and municipalities needed to raise money in the capital markets.

Answers

Answer:

Non Banking Institutions (Investment Bank)

Explanation:

Non Banking Institutions (Investment Bank) do not have a full banking licence and are not usually supervised by a national or international banking regulatory agency.

NBIs facilitate investment, market brokerage, contractual savings and risk pooling.

Non Bank Institutions provide avenues for transforming an economy's savings to capital investment.

One way they do this is by underwriting new issues of securities for corporations, states, and municipalities needed to raise money in the capital markets.

Logan Corp. purchases supplies on account and appropriately records the transaction in an asset account. The adjusting journal entry at year-end when accounting for supplies used will require a (Select all that apply.)

Answers

Answer:

Debit to supplies expenseCredit to supplies

Explanation:

Supplies to be used in a period will be considered an expenses so Logan should debit the Supplies Expense account to show that as an expense, the supplies used have increased.

As Logan Corp. bought the supplies on account, they should record this as a credit in the supplies account to show that it is a liability account that is still owed.

Under MSRB rules, a registered representative is prohibited from sharing in the gains and losses of a customer's account unless the:

Answers

Answer:

D)

Explanation:

This is the case unless the registered representative contributes capital proportionate to his sharing percentage and receives written approval of the principal. This is because the MSRB clearly prohibits this, but if the registered representative opens a joint account with the customer (granted the customer approves), and shares in both the gains and losses of the account with a proportionate capital contribution, then both are entering into the same risk and are allowed to share in the gains and losses. This is as long as the principal provides written approval.

The accrual concept that costs incurred to generate a revenue are expensed in the same period the revenue is known as the

Answers

Answer:

Matching concept

Explanation:

This accounting principle is of the opinion that the expenses incurred in generating revenue should be matched with the revenue or income in order to ascertain whether or not profit or loss has been made,in other words,reporting only the revenue without considering the fact some amount has been incurred in a bid to generate the revenue does not a clear picture of the business underlying transactions.

It is simply aggregating like with like since costs incurred in the period are deducted from revenue in the same period.

David owns a single family house and wants to build a new extension at the rear of the house. David hires an architect who verifies that the local zoning laws allow David to build a 10'-0" extension. The extension to David's house is also known as what type of development

Answers

Answer:

As of right development

Explanation:

When a proposed development of land complies with the all zoning laws alongside other rules and regulation that are in place . such development is said to comply with as of right development.

As of right development does not allow any subjective decision and instruction by the members of the city development board in order to allow full compliance to the community zoning laws.

Explain the services offered by wholesalers to manufacturers

Answers

Answer:

advertising :the wholesaler helps out in carrying out product advertising and sales promotion s and by so doing creating awareness for the product

risk bearing :the wholesaler takes charge of the goods thereby accepting responsibility for losses sufferedin the course of distribution

and we have financing,warehousing and bulk breaking

On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective

Answers

Answer: January 26

Explanation:

A life insurance policy is simply a contract that an individual has with an insurance company whereby the individual makes premium and in turn, the insurance company would have to give a death benefit, to the beneficiaries of the insurance policy once the insured dies.

Based on the information in the question, the coverage become effective on January 26 which was the day the policy was delivered and the first premium was collected.

The coverage of the life insurance policy becomes effective on 26th January.

A life insurance policy is an agreement between a policyholder and a life insurance company. In return for premiums paid by the policyholder during their lifetime, a life insurance policy promises the insurer will pay an amount of money to one or more named beneficiaries after the covered person passes away.

Life insurance is a binding agreement that provides the policyholder with a death payout in the event that the covered person passes away.

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a company is selling used office quipment for $12000 they purchased it 2 years ago for $50000 what is the gain or loss on the sale

Answers

Answer:

( B ) -$18,000

Explanation:

Calculation for the gain or loss on the sale

First step is to calculate for the depreciation of equipment

Depreciation of equipment = ($50,000 - 0) / 5

Depreciation of equipment= $10,00 per year

Second step is to find the value of the asset after 2 years

Value of asset after two year = $50,000 - $20,000

Value of asset after two year Value= $30,000

Third step is to calculate the loss on the selling asset

Loss on selling asset = $12,000 - $30,000

Loss on selling asset =- $18,000

Therefore the loss on the sale will be - $18,000

XCEL Corporation paid a dividend yesterday for $1.50. They expect to pay dividends annually at a constant 6 percent annual growth rate indefinitely. If the required rate of return on this investment is 12 percent, what is the current value of this common stock?

Answers

Answer:

$26.50

Explanation:

The computation of the current value of the common stock is shown below:

Current price is

= Current year dividend ÷ (Required rate of return - Growth rate)

where

Current year dividend is $1.59

The Required rate of return is 12%

ANd, the growth rate is 6%

Now place these values to the above formula

So, the current price of the common stock is

= ($1.50 × 1.06) ÷ (0.12 - 0.06)  

= $1.59 ÷ 0.06

= $26.50

An amount of money that is paid by the company to its shareholders on the regular basis is called a dividend.

The current value of this common stock is $26.50.

This can be estimated by:

[tex]\text{Current price} = \dfrac{\text{Current year dividend}}{(\text{Required rate of return - Growth rate})}[/tex]

Where,

The current year interest = $1.59

The essential rate of return = 12%

The growth rate = 6%

Hence, the current value of the common stock is:

[tex]= \dfrac{(\$1.50 \times 1.06)}{(0.12 - 0.06)}[/tex]

[tex]= \dfrac{\$1.59}{0.06}[/tex]

= $26.50

Therefore, the current price of the common stock will be $26.50.

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Mama Donna’s Bakery produces cupcakes in a variety of unique flavors. The company’s cupcakes are offered for sale in many local restaurants. When a purchase order is placed by a restaurant, the cost related to processing purchase order is most likely attributed to a(n) ________ activity.

Answers

Answer:

Batch Level

Explanation:

Batch level activity is the cost incurred that is related to the production of a certain batch of a product. It is usually associated with the cost incurred in the production of a group of units which cannot be traceable to individual units within a batch.

For instance, the incurred cost for setting up a machine to produce a batch of 10,000 units of an item is referred to as batch level cost. The cost can only be allocated to the 10,000 units produced per batch, not just one unit in the batch. In addition to machine setups, other cost drivers are inspection, purchase orders, direct labor hour, quality tests etc.

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