Business, 12.08.2020 07:01, babycakez3500
Why would a firm be willing to establish an employee stock ownership plan (ESOP)? Check all that apply. Cash dividends paid on ESOP stock are tax deductible if the dividends are used to repay the loan that established the ESOP. Employers are not required to match Social Security and Medicare taxes withheld from employees’ paychecks when the employees are part of an ESOP. It is common for financial institutions to loan money to ESOPs at below-market interest rates. Purple Panda Products Inc. recently created an ESOP. The company issued 200,000 new shares of stock at $50 per share, which it sold to the ESOP. The ESOP borrowed $10 million to purchase the newly issued shares from the company. The financial institution was willing to lend the money to the ESOP, because Purple Panda Products Inc. signed a guarantee for the loan. The firm used the money from the ESOP to repurchase its shares on the open market at $50 per share. Which of the following statements describes the net effect of these transactions on Purple Panda Products Inc.’s balance sheet? The amount of the firm’s total liabilities and total shareholders’ equity will remain the same. The firm’s total liabilities will increase by $10 million. The firm’s total shareholders’ equity will increase by $10 million.
Answers: 2
Business, 21.06.2019 23:30, KylaChanel4756
You are frustrated to find that the only way to contact the customer service department is to make a phone call. the number listed would result in long distance charges to your phone bill. which issue should be addressed by the company to keep its crm in line with your expectations?
Answers: 2
Business, 23.06.2019 06:00, dragon2998
Legal requirements, suppliers and distributors, competitors, and market profiles are contained in the element of your business plan. a. introduction b. operating plant c. industry d. business information
Answers: 1
Business, 23.06.2019 13:00, jimenagl
Regarding the flow of costs through the inventory accounts, which of the following statements is incorrect? a. the costs flow from raw materials inventory to work-in-process inventory to finished goods inventory. b. the format for computing the amount used, manufactured, or sold is the same for all three inventory accounts. c. the final amount at each stage is added at the beginning of the next stage. d. purchases of raw material and freight in are debited to the work-in-process inventory account.
Answers: 1
Why would a firm be willing to establish an employee stock ownership plan (ESOP)? Check all that app...
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