Question

In: Accounting

BJT Corporation is owned 40 percent by Bill, 30 percent by Jack, and 30 percent by...

BJT Corporation is owned 40 percent by Bill, 30 percent by Jack, and 30 percent by the Trumpet Partnership. Bill and Jack are father and son. Jack has a 10 percent interest in Trumpet Partnership. What is Jack’s total direct and constructive ownership of BJT Corporation under Section 267?

a.30 percent.

b.100 percent.

c.73 percent.

d.70 percent.

e.33 percent.

Solutions

Expert Solution

  

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Of​ Sharpe's sales, 30 percent is for​ cash, another 40 percent is collected in the month...
Of​ Sharpe's sales, 30 percent is for​ cash, another 40 percent is collected in the month following the​ sales, and 30 percent is collected in the second month following sales. November and December sales for 2018 were ​$250,000 and ​$205,000​, respectively.Sharpe purchases its raw materials 2 months in advance of its sales. The purchases are equal to 60 percent of the final sales price of​ Sharpe's products. The supplier is paid 1 month after it makes a delivery. For​ example,...
Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent,...
Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an S corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Year 2 Sales revenue $ 175,000 $ 310,000 Cost of goods sold (60,000 ) (85,000 ) Salary to owners Jack and Jill (40,000 ) (50,000 ) Employee wages (15,000 ) (20,000 ) Depreciation expense (10,000 ) (15,000 ) Miscellaneous expenses (7,500 ) (9,000 ) Interest income (related...
The Dolphin Corporation, a firm in the 40 percent marginal tax bracket with a 9 percent...
The Dolphin Corporation, a firm in the 40 percent marginal tax bracket with a 9 percent cost of capital, is considering a new project. This project involves the introduction of a new product. This project is expected to last 4 years and then to be terminated. Cost of new plant and equipment is $990,000. Shipping and installation costs are $10,000. The company needs to increase its working capital requirement. There will be an initial inventory requirement of $15,000 just to...
The Dolphin Corporation, a firm in the 40 percent marginal tax bracket with a 9 percent...
The Dolphin Corporation, a firm in the 40 percent marginal tax bracket with a 9 percent cost of capital, is considering a new project. This project involves the introduction of a new product. This project is expected to last 4 years and then to be terminated. Cost of new plant and equipment is $990,000. Shipping and installation costs are $10,000. The company needs to increase its working capital requirement. There will be an initial inventory requirement of $15,000 just to...
Santa Corporation is 90 percent owned subsidiary of Panta Corporation, acquired by Panta on January 1,...
Santa Corporation is 90 percent owned subsidiary of Panta Corporation, acquired by Panta on January 1, 20X1 for $270,000 when Santa’s common stock and retained earnings were $100,000 and $150,000 respectively. All book values of Santa’s assets and liabilities were equal to their fair values except unrecorded patent which its fair value is equal the differential value with remaining life of 10 years. Both firms are using FIFO method of inventory. Followings are the transactions of merchandize between these two...
Problem 5 Santa Corporation is 90 percent owned subsidiary of Panta Corporation, acquired by Panta on...
Problem 5 Santa Corporation is 90 percent owned subsidiary of Panta Corporation, acquired by Panta on January 1, 20X1 for $270,000 when Santa’s common stock and retained earnings were $100,000 and $150,000 respectively. All book values of Santa’s assets and liabilities were equal to their fair values except unrecorded patent which its fair value is equal the differential value with remaining life of 10 years. Both firms are using FIFO method of inventory. Followings are the transactions of merchandize between...
You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella Co.,...
You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella Co., and 30 percent in Edward Resources. What is the expected return of your portfolio if Jacob, Bella and Edward have expected returns of 0.05, 0.13 and 0.18, respectfully? Round to two decimal places.
5. You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella...
5. You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella Co., and 30 percent in Edward Resources. What is the expected return of your portfolio if Jacob, Bella and Edward have expected returns of 0.02, 0.14 and 0.17, respectfully? Round to two decimal places.
In preparing the consolidation worksheet for Pencil Corporation and its 60 percent–owned subsidiary, Stylus Company, the...
In preparing the consolidation worksheet for Pencil Corporation and its 60 percent–owned subsidiary, Stylus Company, the following consolidation entries were proposed by Pencil's bookkeeper: Worksheet Entries Debit Credit Cash 100,000 Accounts Payable 100,000 To eliminate the unpaid balance for intercorporate inventory sales in 20X5. Cost of Goods Sold 16,800 Income from Stylus Company 16,800 To eliminate unrealized inventory profits at December 31, 20X5. Income from Stylus Company 196,000 Sales 196,000 To eliminate intercompany sales for 20X5. Pencil's bookkeeper recently graduated...
jack agrees to stop smoking for ten years if bill will pay him 10,000.00 in the...
jack agrees to stop smoking for ten years if bill will pay him 10,000.00 in the ninth year bill cancels the contract. a. has the contract been cancelled properly? b. if so does jack have an action under the doctrine of promissory estoppel? what is promissory estoppel
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT