Plums software sales

Assignment Help Accounting Basics
Reference no: EM13122664

John and jean own 80 percent and 20 percent respectively, of palm Corporation stock. Thanks to their hard work, Plum's software sales have sky rocketed. In its first year of operation plum's earning were minimal, but four years later, Plum grossed $10 million. plum compensated John and Jeans as follows: John received a bonus of 19 percent of net profits at the end of each year. Plum never paid any dividends. Can plum deduct any or all of the "salaries" paid to John and Jean?

Reference no: EM13122664

Questions Cloud

What will the concentration be after 14.0 minutes : The rate constant for a certain reaction is K = 8.90×10^-3 . If the initial reactant concentration was 0.950 M, what will the concentration be after 14.0 minutes.
Real-life application of linear function : Using the Library, web resources, and/or other materials, find a real-life application of a linear function. State the application, give the equation of the linear function, and state what the x and y in the application represent.
Federal estate tax : Gift tax returns were filed reporting these gifts. How much of her estate is subject to federal estate tax after considering the estate tax exemption?
What would its volume be : a sample of gas occupies 12 liters under a pressure of 1.2 atm. what would its volume if the pressure were increased to 2.4 atm? assume the the temperature of the gas does not change.
Plums software sales : John and jean own 80 percent and 20 percent respectively, of palm Corporation stock. Thanks to their hard work, Plum's software sales have sky rocketed. In its first year of operation plum's earning were minimal, but four years later, Plum grossed..
Question about domain of functions : State the domain of the following and provide a brief explanation fgor your answer: a) f(x)=sqrtx+4 b) g(x)= 2x+1/x-7 c) h(x)=3x^2+5x-3 d) l(x)=2x+3 e) m(x)=3/x^2+7
Explanation of slope : Once you have the graph of a line, how can you find its slope? Does it matter which points you choose to find the slope? Does the slope vary depending on your choice of points?
Aggregate expenditure function transformation : Explain how the aggregate expenditure function shifts in response to changes in each of the following variables:
What is meant by a function : Explain what is meant by a function. Give two real-world examples of relationships that are functions and two real-world examples that are not functions.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Partnership income taxation

What is the amount of income from the partnership that Diamond Co. must report for its tax year ending June 30, 2010? What is the amount of income from the partnership that Bill must report for her tax year ending December 31, 2010?

  Balance of mortgage payable

The balance of mortgage payable at a given balance sheet date will be reported as a long-term liability.

  Managing the collection of receivables

Compute the day’s sales uncollected for both companies as of the end of current period. Which company is doing a better job in managing the collection of its receivables?

  Slotnick realizing the forfeited deposits

The deposits are based on the container cost marked up 20%. How much profit did Slotnick realize on the forfeited deposits?

  Assuming that put company uses the cost method

Put Company paid $220,000 for an 80% interest in Sel Company on July 1, 2011, when Sel Company had total equity of $110,000. Sel Company reported earnings of $10,000 for 2011 and declared dividends of $8,000 on November 1, 2011.

  Adjusting entry for depreciation

Prepare the adjusting entry for depreciation at December 31, post the adjustments to T accounts, and indicate the balance sheet presentation of the equipment at December 31.

  Overhead based on direct labor cost

During 2010, Durham Manufacturing expected to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Durham applied overhead based on direct labor cost.

  Fundamental accounting model

What is the fundamental accounting model? Explain what debit and credit mean? What is a journal entry?

  Internet research of sole proprietorships

Conduct literature and internet research of sole proprietorships, partnerships, and corporations. Discuss the three business forms in terms of how they are formed, managed, and how they operate as business entities.

  Income taxes journal entry

Tazmania Inc. had pretax financial income of $154,000 in 2007. Prepare Tazmania's journal entry to record 2007 taxes, assuming a tax rate of 45%.

  Comparing and contrasting federal and state tax research

Write down a 3-5 pg paper comparing and contrasting Federal and state tax research. Examine the different constitutionality challenges with regard to Federal and state taxes.

  Explain include authority and reasoning

Explain the problem with authority and resoning

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!

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