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KrishnaBalaram1235
20.07.2021 •
Business
Riverbend Inc. received a $240,000 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,710,000 before deducting the dividends received deduction (DRD), a $50,500 NOL carryover, and a $153,000 charitable contribution.
a. What is Riverbend's deductible DRD assuming it owns 10 percent of Hobble Corporation?
b. Assuming the facts in part (a), what is Riverbend's marginal tax rate on the dividend?
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Ответ:
GROSS MARGIN = 33.33%
Explanation:
PRODUCTION COST COMPONENTS
Direct materials 14,000 Direct work 19,000 Lease and utilities 17,000TOTAL PRODUCTION COST = 50,000
TOTAL UNITS PRODUCED = 5,000
UNIT COST= (Total Production Cost / Total Units Produced) = 50,000 / 5,000 = 10
FINAL GOODS INVENTORY = (Total Units Produced – Total Units Sales) = 5,000 – 3,000 = 2,000
FINAL GOODS INVENTORY AMOUNT = (Final goods Inventory * Unit Cost) = 2,000 * 10 = 20,000
SALES REVENUE= (Sold Units * Sale Price) = (3,000 * 15) = 45,000
COST OF SOLD GOODS (a) = (Sold Units * Unit Cost) = 3,000 * 10 = 30,000
COST OF SOLD GOODS (b) = (Beginning Balance + Production cost – Final Balance) = 0 + 50,000 – 20,000 = 30,000
GROSS MARGIN = ((Sales Revenue – Cost of sold Goods) / Sales Revenues) * 100 = ((45,000 – 30,000) / 45,000) * 100 = 33.33%
COST OF SOLD GOODS (a) Calculated according to the inventory unit cost
COST OF SOLD GOODS (b) Calculated as the difference in inventory