Badger corporation was incorporated in the current year. it reports an $8,000 nol on its initial tax return. badger distributed $2,500 to its shareholders. is it possible for this distribution to be taxed as a dividend to badger's shareholders? explain. a.yes. the taxable loss must first be adjusted to compute current e& p which would need to be at least $2,500 for this to be considered to be a dividend. b.yes. the taxable loss must first be adjusted to compute current e& p which would need to be at least $10,500 for this to be considered to be a dividend. c.no. the taxable loss of $8,000 exceeds the distribution amount of $2,500, so the distribution would be a return of capital. d.no. the taxable loss must first be adjusted to include accumulated e& p. the adjustment needs to be at least $8,000 to avoid a taxable loss but would still be deemed a return of capital.

Select the statement that indicates tina's company is a partnership. tina jones is a dancer specializing in latin dance styles. she always wanted to have her own dance studio where she could teach dancing to young and old alike. in 2006, she opened her first dance studio, electric diva, in madison triangle. it was a great choice as a business location because it's well-connected by highways to most places in the city. she leased the space for three years. her initial investment included a good sound system, cheerful interior design, and strong flooring. to raise capital for the business, tina turned to her brother-in-law, philip. philip made half the financial investment. he manages the accounts and social media needs of the business. he has a 30% share in trisha's business. together, they expanded the business to three dance studios in the city and plan to open franchises in other cities.

Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d. select short-term savings instruments to lock in earnings at a current high rates.

Brian has been working for a few years now and has saved a substantial amount of money. he now wants to invest 50 percent of his savings in a bank account where it will be locked for three years and gain interest. which type of bank account should brian open? a. savings account b. money market account c. checking account d. certificate of deposit