Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 4 2 pts Builtrite had sales of $700,000 and COGS of $300,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also
Question 4 2 pts Builtrite had sales of $700,000 and COGS of $300,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $80,000 was realized during the year along with a capital loss of $60,000 If Builtrite had experienced a long-term capital loss of $70,000 (instead of the $60,000 long- term capital loss stated in the problem), and still had the $80,000 long-term capital gain stated in the problem, which of the following is correct (compared to the original answer): olololo taxable income would increase by an additional $40,000 compared to the answer in question 1 taxable income would increase by an additional $20,000 compared to the answer in question 1 taxable income would increase by an additional $10,000 compared to the answer in question 1 taxable income would decrease by $10,000 compared to the answer in question 1 Question 5 2 pts (This problem is not related to the above problem) Last year Builtrite had retained earnings of $140,000. This year, Builtrite had true net profits after taxes of $65,000 which includes common stock dividends received of $10,000. Builtrite also paid a preferred dividend of $25,000. What is Builtrite's new level of retained earnings? $180,000 $190,000 $200,000 $170,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started