In: Statistics and Probability
Did you ever want to be a corporation? Can US shareholders for CFC purposes be individuals? If so, then does mean they are taxed on their sec. 951(a) subpart F inclusions just like US Shareholders that are DCs? Are US Shareholder that are DCs able to use sec. 960 for sec. 951A GILTI? The answers to these questions are obviously yes. So, if you were a US shareholder of a CFC, then would you want to be treated as a corporation instead of an individual - what would be the benefit? Can you? Does this then mean you can take the sec. 960 deemed credit for GILTI inclusions? How would a person be taxed? If the individual were to be able to be treated as corporation, would it be advantageous?
In: Finance
a) The Evergreen Bank expects that the Peso (P) will
depreciate against the
US $ from its spot rate of $0.43 to $0.42
in 90 days. The following interbank
lending and borrowing rates exist:
Currency
Lending Rate Borrowing Rate
US
$ 7%
7.2%
P
22%
24%
The Evergreen Bank considers borrowing$430,000 or its equivalent
Peso amount
in the interbank market and investing the proceeds for 90 days.
Estimate the
speculative profits (or losses) that could be earned from this
strategy.
(b)Describe how market forces will work to bring the
speculative profits (or losses)
to long run equilibrium.
In: Finance
)(a)Suppose the MIDLAND bank expects the New Zealand dollar (NZ$) will depreciate against the US$ from its spot rate of $0.43 to $0.42 in 60 days. The following interbank lending and borrowing rates exist: Currency Lending Rate Borrowing Rate US$ 7% 7.2% NZ$ 22.0% 24% Midland Bank has access to NZ$ 10million or US$ 4.3million.How can the bank attempt to make a speculative profit based on expected exchange rate movement without risking depositors money? Estimate the profit (or losses) that could be earned from this strategy. (b)Identify the factors which determine changes in equilibrium exchange rate. Discuss how any two of these factors affect equilibrium exchange rate.
In: Finance
Management of Johnson & Johnson desperately needs a strategic plan to save its Tylenol[1]business, but first some background. According to Johnson & Johnson,
Johnson & Johnson has been a part of people's lives for 128 years and a valuable part of their investments for approximately 70 years. Founded in 1886, we listed our shares on the New York Stock Exchange for public investors in 1944.
During our history, we have built the most comprehensive base of healthcare businesses in the world, generating approximately 70 percent of our revenues from No. 1 or No. 2 global leadership positions in our respective markets.
Our consistent performance has enabled us to deliver an exceptional track record of growth that few, if any, companies can claim: 30 consecutive years of adjusted earnings increases; and 52 consecutive years of dividend increases.[2]
In 2013, the company had revenue of $71.3 billion[3]mostly from healthcare, such as skin-care products, nutritional products, over-the-counter and prescription pharmaceuticals, medical devices, and diagnostic tools. Johnson & Johnson products are found in virtually every home, hospital, operating room and doctor’s office in 188 countries worldwide.
In 1955, McNeil Laboratories introduced Tylenol, the first pain reliever without aspirin. The product was so successful regionally that Johnson & Johnson acquired the company in 1959 to expand the business globally.
This morning, Amazon announced the acquisition of a small pharmaceutical company which had secretly developed and patented a pain reviver which is much more effective than Tylenol. Although Tylenol has an excellent reputation, Johnson & Johnson cannot reformulate it. Management needs a new strategy to combat Amazon and save the Tylenol business. Help them by answering the 13 questions starting on the following page.
1. Describe two (no more!) important opportunities and two (no more!) important threats facing Johnson & Johnson’s Tylenol business, including the individual combination of strengths/weaknesses and external factors creating each. (10 points)
In: Operations Management
In: Operations Management
Marc and Michelle are married and earned salaries this year of $69,600 and $14,100, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,200 from corporate bonds. Marc contributed $3,200 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,200. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $7,400 of expenditures that qualify as itemized deductions and they had a total of $6,340 in federal income taxes withheld from their paychecks during the course of the year
1. What is Marc and Michelle’s gross income?
2.What is Marc and Michelle’s adjusted gross income?
3. What is the total amount of Marc and Michelle’s deductions from AGI?
4. What is Marc and Michelle’s taxable income?
5.What is Marc and Michelle’s taxes payable or refund due for the year?
In: Accounting
Marc and Michelle are married and earned salaries this year of $64,800 and $12,300, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $600 from corporate bonds. Marc contributed $2,600 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,600. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $6,200 of expenditures that qualify as itemized deductions and they had a total of $5,600 in federal income taxes withheld from their paychecks during the course of the year.
a. What is Marc and Michelle’s gross income?
b. What is Marc and Michelle’s adjusted gross income?
c. What is the total amount of Marc and Michelle’s deductions from AGI?
d. What is Marc and Michelle’s taxable income?
e. What is Marc and Michelle’s taxes payable or refund due for the year?
In: Accounting
Marc and Michelle are married and earned salaries this year of $67,600 and $13,350, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $950 from corporate bonds. Marc contributed $2,950 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,950. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $6,900 of expenditures that qualify as itemized deductions and they had a total of $5,950 in federal income taxes withheld from their paychecks during the course of the year. (Use the tax rate schedules.)
a. What is Marc and Michelle’s gross income?
b. What is Marc and Michelle’s adjusted gross income?
c. What is the total amount of Marc and Michelle’s deductions from AGI?
d. What is Marc and Michelle’s taxable income?
e. What is Marc and Michelle’s taxes payable or refund due for the year?
In: Accounting
COUNTRY = FINLAND
These answers may be harder to find, but do the best you can.
In your country, do citizens go to the bureaucracy for individual help or is the bureaucracy “neutral,” carrying out orders in a neutral manner? Do you think this reflects the type of government that you identified?
In: Economics