What are the differences between interest payments made by a corporation versus dividend payments? From an...
What are the differences between interest payments made by a corporation versus dividend payments? From an accounting point of view.
Homework Answers
Interest payments is the borrowing cost incurred by the company during an accounting period against the funds borrowed by it from the vendor.Interest payments are charge against profit.Interest is to be paid whether there is profit or not.
Dividend payment refers to the portion of the profit which is distributed to the owners of the company.Dividend payment are proportion of profit.Dividends are paid only when there is profit.
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What are the differences between interest payments made by a
corporation versus dividend payments? From an...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $484,000. In...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $484,000. In addition, it received $29,000 in income from interest on bonds it held in Zig Manufacturing and received $29.000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 21% tax bracket and is eligible for a 50% dividend exclusion on its Tank Industries stock. a. Calculate the firm's tax on its operating earnings only. b. Find...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $485,000. In...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $485,000. In addition, it received S28,000 in income from interest on bonds it heid in Zig Manufacturing and a. Calculate the firm's tax on its operating eamings only b. Find the tax and the after-tax amount attributable to the interest income from Zig Manufacturing bonds c. Find the tax and the after-tax amount attributable to the dividend income from the Tank Industries, Inc., common stock. d....
What is one of the major differences between an economic P&L versus an accounting P&L The...
What is one of the major differences between an economic P&L versus an accounting P&L The application of GAAP The treatment of Non-cash (eg depreciation, amortization, etc) The treatment of deferred revenue A and B B and C
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $484,000. In...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $484,000. In addition, it received $20,000 in income from interest on bonds it held in Zig Manufacturing and received $20,000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 21% tax bracket and is eligible for a 50% dividend exclusion on its Tank Industries stock. a. Calculate the firm's tax on its operating earnings only. b. Find...
please answer all of the parts ! Interest versus dividend income Last year, Shering Corporation had...
please answer all of the parts !
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $488,000. In addition, it received $23,000 in income from interest on bonds it held in Zig Manufacturing and received $23,000 in income from dividends on its 4% common stock holding in Tank Industries, Inc. Shering is in the 21% tax bracket and is eligible for a 50% dividend exclusion on its Tank Industries stock. a. Calculate the firm's tax...
Please show me on excel. Interest versus dividend income Last year, Shering Corporation had pretax earnings...
Please show me on excel. Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $490,000. In addition, it received $20,000 in income from interest on bonds it held in Zig Manufacturing and received $20,000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering faces a flat 21% tax rate and is eligible for a 50% dividend exclusion on its Tank Industries stock. Calculate the firm’s tax on its operating...
With explanation PLZ. Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to...
With explanation PLZ.
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $50,000 for the current period. Assuming a flat ordinary tax rate of 35%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: P1-10 b. The firm pays $12,000 in preferred stock dividends.
Will received the following interest and dividend payments this year. What amount should Will include in...
Will received the following interest and dividend payments this year. What amount should Will include in his federal gross income? City of Greenwood bond interest $1,200 U.S. Treasury bond interest 500 State of Kentucky bond interest 1,000 Mutual Corporation bond interest 600 Sale of Kentucky bond for a profit of 200 What amount should Will include in his gross income? a. Zero b. 1,100 c. 1,300 d. 2,200 e. 3,500
Interest versus dividend expense Michaels Corporation expects earnings before in terest and taxes to be $50,000...
Interest versus dividend expense Michaels Corporation expects earnings before in terest and taxes to be $50,000 for the current period. Assuming an ordinary tax rate of 35%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $12,000 in interest. b. The firm pays $12,000 in preferred stock dividends. 2-5
What are some of the main differences between the outsourcing phenomena in manufacturing versus business services?
What are some of the main differences between the outsourcing phenomena in manufacturing versus business services?
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $484,000. In addition, it received $29,000 in income from interest on bonds it held in Zig Manufacturing and received $29.000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 21% tax bracket and is eligible for a 50% dividend exclusion on its Tank Industries stock. a. Calculate the firm's tax on its operating earnings only. b. Find...
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $485,000. In addition, it received S28,000 in income from interest on bonds it heid in Zig Manufacturing and a. Calculate the firm's tax on its operating eamings only b. Find the tax and the after-tax amount attributable to the interest income from Zig Manufacturing bonds c. Find the tax and the after-tax amount attributable to the dividend income from the Tank Industries, Inc., common stock. d....
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $484,000. In addition, it received $20,000 in income from interest on bonds it held in Zig Manufacturing and received $20,000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 21% tax bracket and is eligible for a 50% dividend exclusion on its Tank Industries stock. a. Calculate the firm's tax on its operating earnings only. b. Find...
please answer all of the parts !
Interest versus dividend income Last year, Shering Corporation had pretax earnings from operations of $488,000. In addition, it received $23,000 in income from interest on bonds it held in Zig Manufacturing and received $23,000 in income from dividends on its 4% common stock holding in Tank Industries, Inc. Shering is in the 21% tax bracket and is eligible for a 50% dividend exclusion on its Tank Industries stock. a. Calculate the firm's tax...
With explanation PLZ.
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $50,000 for the current period. Assuming a flat ordinary tax rate of 35%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: P1-10 b. The firm pays $12,000 in preferred stock dividends.
Interest versus dividend expense Michaels Corporation expects earnings before in terest and taxes to be $50,000 for the current period. Assuming an ordinary tax rate of 35%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $12,000 in interest. b. The firm pays $12,000 in preferred stock dividends. 2-5
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