Business
Business, 02.04.2020 17:10, yeimi12

Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshia, who is also an employee. Aleshia is in the 24% tax bracket, and Rover is subject to a 21% rate. Because Aleshia's contribution to the business is substantial, Rover believes that a $135,600 bonus in the current year is reasonable compensation and should be deductible by the corporation. However, Rover is considering paying Aleshia a $135,600 dividend because the tax rate on dividends is lower than the tax rate on compensation. Answer the following questions to determine whether Rover is correct in believing that a dividend is the better choice. a. Regarding taxes, which would benefit Aleshia the most?The $135,600 dividend because after taxes she would have $ from the dividend and $ from the bonus. b. Regarding taxes, which would benefit Rover Corporation the most?The $135,600 bonus because it would save Rover $ in taxes. c. Considering the two parties together, which alternative would provide the most overall tax savings?The $135,600 bonus because when the overall effect to both the corporation and the shareholder are considered the net tax savings is $.

answer
Answers: 3

Other questions on the subject: Business

image
Business, 21.06.2019 23:30, nourmaali
As manager of kids skids, meghan wants to develop her relationship management skills. in order to do this, she learns how to
Answers: 2
image
Business, 22.06.2019 11:00, PanjiUR9220
What is the correct percentage of texas teachers charged with ethics violations each year?
Answers: 2
image
Business, 22.06.2019 20:10, Maria3737
Quick computing currently sells 12 million computer chips each year at a price of $19 per chip. it is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $24 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 6 million per year. the old chips cost $10 each to manufacture, and the new ones will cost $14 each. what is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (enter your answer in millions.)
Answers: 1
image
Business, 22.06.2019 20:20, dd123984
Levine inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. direct materials (9 pounds at $1.80 per pound) $16.20 direct labor (6 hours at $14.00 per hour) $84.00 during the month of april, the company manufactures 270 units and incurs the following actual costs. direct materials purchased and used (2,500 pounds) $5,000 direct labor (1,660 hours) $22,908 compute the total, price, and quantity variances for materials and labor.
Answers: 2
Do you know the correct answer?
Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshia, who is also a...

Questions in other subjects:

Konu
Mathematics, 27.08.2020 14:01