Ask Question
BusinessBusiness
25 April, 20:36

The Loophole Tax Service Inc. has accumulated earnings of $135,000 and current earnings of $60,000. If the dividends-paid deduction is $8,500 and reasonable business needs amount to $160,000, what is the accumulated earnings credit

+2
Answers (1)
  1. 25 April, 21:00
    0
    it will be credit by 51,500

    Explanation:

    This will be calcualte with the same procedure as retained earnings:

    beginning + income - dividends = ending

    We should understand that this is done to determinate if a company is subject to the accumualted earnings tax.

    accumualed earnings 135,000

    income for the period 60,000

    dividends (8,500)

    increase: 51,500

    net 186,500

    This amount is less than the 250,000 exempt so there is not amount subject to accumulated earnings tax.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Loophole Tax Service Inc. has accumulated earnings of $135,000 and current earnings of $60,000. If the dividends-paid deduction is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Some years ago, chemists at 3M Corporation were trying to create a super-strong glue. Somehow they got their molecules twisted and came up with one of the weakest glues ever made.
Answers (1)
Mack reynolds, the manager of the special products division, must decide whether to bid or not, and if intermodular semiconductor systems does submit a bid, what the quoted price should be.
Answers (1)
An Iowa state statute requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack's Fun Park fails to maintain its equipment. Kay, a patron, is injured. Jack's has committeda. a dram shop act. b.
Answers (1)
Which of the following should be avoided when providing online customers service? A.) Writing the same way you would speak. B.) Using slang or jargon C.) Demonstrating common courtesy. D.) Using the customer's name.
Answers (1)
Describe at least two negative outcomes of having too much money and credit in the economy
Answers (1)
New Questions in Business
Merchandise is sold for cash. The selling price of the merchandise is $3,200 and the sale is subject to a 8% state sales tax. The journal entry to record the sale would include a credit to a. Sales Tax Payable for $256 b. Sales for $3,456 c.
Answers (1)
For a honda accord, some factors shift demand left and others shift it right, as shown. classify each factor by how it shifts the current demand curve to a new position.
Answers (1)
The quantity of u. s. dollars demanded in the currency market depends in part on:
Answers (1)
Most Information Technology careers require workers to perform their jobs in A) a home office. B) a business office. C) a secure office. D) an off-site office.
Answers (1)
Operating Costs Accounts Payable Cash Flow Startup Costs Gross Profit Angel Investor 1. An investor who provides money to a business in exchange for debt or equity 2. Cost of starting up a business until it can pay for itself 3.
Answers (1)
Home » Business » The Loophole Tax Service Inc. has accumulated earnings of $135,000 and current earnings of $60,000. If the dividends-paid deduction is $8,500 and reasonable business needs amount to $160,000, what is the accumulated earnings credit
Sign Up Forgot Password?