User Account

All Pages

Calculate the reduction to Caramels E-P

Assignment Help Accounting Basics
Reference no: EM132646724

Problem - Caramel Corporation has 5,000 shares of stock outstanding. In a qualifying stock redemption, Caramel distributes $145,000 in exchange for 1,000 of its shares. At the time of the redemption, Caramel has paid-in capital of $800,000 and E & P of $300,000. Calculate the reduction to Caramel's E & P as a result of the distribution.

Reference no: EM132646724

Questions Cloud

What is the estimated real interest rate : What is the estimated real interest rate using the approximate nominal interest rate equation for that? decade?
What are common signs of bullying in nursing : What are the common signs of bullying in nursing? What are common stressors in the nursing workplace? What are some strategies to manage personal
Determine the tax consequences to the shareholder : Sunset Corporation, with E & P of $400,000, makes a cash distribution of $120,000 to a shareholder. Determine the tax consequences to the shareholder
Monthly mortgage payments : You decided to buy a house. The selling price is $360,000; you will pay down $60,000 and obtain a 30 years fixed rate mortgage at 3.75% annual rate
Calculate the reduction to Caramels E-P : Caramel has paid-in capital of $800,000 and E & P of $300,000. Calculate the reduction to Caramel's E & P as a result of the distribution
Construct a one-year binomial tree for project : Consider the data given in the previous question. We will assume that Technology A has a salvage value of $7 million, rather than zero
What is information security governance : What is Information Security Governance? What documentation is associated with Security Governance?
Find the expected rate of return on the market portfolio : Consider the following two scenarios for the economy and the expected returns in each scenario for the market portfolio, an aggressive stock A, and a defensive
Compute Indigo recognized gain or loss : Compute Indigo's recognized gain or loss if it sells Property B to an unrelated party, then distributes the sale proceeds in redemption of Linda's shares

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd