On january 1, 2017, leo paid $33,000 for 7 percent of the stock in bls, an s corporation. in november, he loaned $9,000 to bls in return for a promissory note. bls generated a $780,000 operating loss in 2017. bls generated $426,000 ordinary business income in 2018. how much of leo’s share of this income is included in his 2018 taxable income? compute leo’s basis in his bls stock and his bls note at the end of 2018. how would your answers to parts a and b change if bls’s ordinary business income was only $238,000?

Jordan, inc. sells fireworks. the company’s marketing director developed the following cost of goods sold budget for april, may, june, and july. april may june july budgeted cost of goods sold $62,000 $72,000 $82,000 $88,000 jordan had a beginning inventory balance of $3,000 on april 1 and a beginning balance in accounts payable of $14,600. the company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. jordan makes all purchases on account. the company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. required prepare an inventory purchases budget for april, may, and june. determine the amount of ending inventory jordan will report on the end-of-quarter pro forma balance sheet. prepare a schedule of cash payments for inventory for april, may, and june. determine the balance in accounts payable jordan will report on the end-of-quarter pro forma balance sheet.

Randall's, inc. has 20,000 shares of stock outstanding with a par value of $1.00 per share. the market value is $12 per share. the balance sheet shows $42,000 in the capital in excess of par account, $20,000 in the common stock account, and $50,500 in the retained earnings account. the firm just announced a 5 percent (small) stock dividend. what will the balance in the retained earnings account be after the dividend?

The research of robert siegler and eric jenkins on the development of the counting-on strategy is an example of design.