Business, 07.03.2020 05:10 angelina0miles

Red Corporation, which owns stock in Blue Corporation, had net operating income of $200,000 for the year. Blue pays Red a dividend of S40,000. Red takes a dividends received deduction of $28,000. Which of the following statements is correct?

a. Red owns less than 20% of Blue Corporation.
b. Red owns 20% or more,
c. Red owns 80% of Blue Corporation.
d. Red owns 80% or more of Blue Corporation.
e. None of the above.

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Answer from: qurreab26

E.None of the above.

Explanation:

A corporation is a company owned by many people through the purchase of shares or stocks, corporations are described as a man in the law as it can be sued and it also has the power to sue.

Dividend is the amount paid by public quoted corporations to their share or stock holders.Dividends are a portion of the net income of a company.

Red’s dividends received deduction is 70% of the dividend received ($28,000 ÷ $40,000). The 70% dividends received deduction applies if ownership is 30% or more, but less than 70%.

Answer from: Quest

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

Answer from: Quest

They are enjoying the advantage of independence while running their own small business. they can go where they want when they want to, because they control the restaurant's hours. they can also make time for life emergencies, and set the hours to be when they do the best cooking.

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