What effect does a redemption distribution have on the distributing corporation's e& p? a. the distributing corporation's e& p will increase by the excess of fmv over the property's e& p basis. b.the distributing corporation's e& p is increased by a percentage that equals the outstanding stock redeemed. c.if the redemption is treated as a sale or exchange, the corporation must reduce its e& p by the portion of the current and accumulated e& p balances attributable to the redeemed stock. d.both a and c

Capital financial corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. the current prime rate is 16.50 percent, and capital charges 3.50 percent over prime to charming as its annual loan rate. a. determine the maximum loan for which charming paper company could qualify.

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.

How success was the first day of the bus boycott