France imposes a 10 percent tax on the aggregate net appreciation in the value of stocks held by french residents at the end of a calendar year. in addition, all french residents are subject to an income tax within the meaning of reg sec 1.901-2(a). nancy, a us citizen, lives in nancy, france. she buys ibm stock on july 1, 2017 for €1,000. on 12/31/2017, the stock is worth €1,100, and she pays the stock appreciation tax of €10. on 12/31/2018 the stock is worth €1,300, and she pays a stock appreciation tax of €20 (10% x 1,300 - 1,100) for 2018. she sells the stock on 1/2/2019 for €1,350 and has a gain of €350 for purposes of the french income tax. is the stock appreciation tax a creditable tax for us tax purposes? explain.

Torino company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10 par value common stock outstanding. the company paid total cash dividends of $3,500 in its first year of operation. the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

6carla would like to buy a dress, a dresser for her bedroom, and a home theater system. she has one month's worth of living expenses in her emergency fund. carla decides to save for the home theater system. did carla make the right decision? why or why not? a. yes; her emergency fund is full and the other items will probably be less expensive. b. yes; she could save more for her emergency fund, but the home theater will be harder to save for. c. no; she should save more for her emergency fund because she has saved less than the recommended amount. d. no; she should have bought the dress and dresser first because she could afford them right away. reset next