On january 1, 2015, kinney, inc., an electing s corporation, holds $5,000 of aep and $9,000 in aaa. kinney has two shareholders, eric and maria, each of whom owns 500 shares of kinney's stock. kinney's 2015 taxable income is $6,000. kinney distributes $6,000 to each shareholder on february 1 2015, and distributes another $3,000 to each shareholder shareholder on september 1.

how is erin taxed on the distribution?

a. $500 dividend income.

b. $1,000 dividend income.

c. $1,500 dividend income.

d. $3,000 dividend income.

e. none of the above.

What would be the input, conversion and output of developing a new soft drink

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position