Case: Suppose you are given 6 variables from a survey that y…
Case: Suppose you are given 6 variables from a survey that you wish to use for a cluster analysis. Before progressing to clustering you wish to reduce the dimensionality of the dataset. Consider the following scree plot and Eigenvalues from a principal component analysis. PC1 PC2 PC3 PC4 PC5 PC6 Standard deviation 1.6526 1.4893 0.6645 0.58417 0.42735 0.2919 –REFER TO THIS CASE FOR THE QUESTIONS 41-43 — Q41: How many components would you select if you are using the eigenvalues?
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Note: use the following fact pattern for the next two questions. Alberto owns 25 percent of Sycamore, an S corporation. At the beginning of the year, Alberto’s basis in his stock was $30,000, his share of Sycamore’s accumulated adjustments account (AAA) was $25,000, and his share of Sycamore’s earnings and profits from prior C corporation years (accumulated E&P) was $15,000. Then, during the year, Alberto was allocated $12,500 of ordinary income and Sycamore made a nonliquidating distribution to Alberto of $50,000. [question 1 of 2] How much of the distribution is taxable to Alberto as a dividend?
Read DetailsAlberto owns 25 percent of Sycamore, an S corporation. At th…
Alberto owns 25 percent of Sycamore, an S corporation. At the beginning of the year, Alberto’s basis in his stock was $30,000, his share of Sycamore’s accumulated adjustments account (AAA) was $25,000, and his share of Sycamore’s earnings and profits from prior C corporation years (accumulated E&P) was $15,000. Then, during the year, Alberto was allocated $12,500 of ordinary income and Sycamore made a nonliquidating distribution to Alberto of $50,000. [question 2 of 2] What is Alberto’s basis in his Sycamore stock after the distribution?
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Note: use the following fact pattern for the next three questions. Nicole and Paula each own 50 percent of Magnolia, an S corporation. Magnolia reported the following revenues and expenses: Sales revenue – $720,000 Cost of goods sold – ($200,000) Depreciation expense (MACRS) – ($12,000) Sec. 179 expense – ($44,000) Long-term capital gains – $8,000 Qualified dividends – $5,000 Nontaxable interest income – $3,000 Salaries to owners – ($120,000) Employee wages (excluding salaries to owners) – ($50,000) In addition, Nicole and Paula each received distributions of $10,000 from Magnolia. [question 1 of 3] How much ordinary business income is allocated to Nicole?
Read DetailsNicole and Paula each own 50 percent of Magnolia, an S corpo…
Nicole and Paula each own 50 percent of Magnolia, an S corporation. Magnolia reported the following revenues and expenses: Sales revenue – $720,000 Cost of goods sold – ($200,000) Depreciation expense (MACRS) – ($12,000) Sec. 179 expense – ($44,000) Long-term capital gains – $8,000 Qualified dividends – $5,000 Nontaxable interest income – $3,000 Salaries to owners – ($120,000) Employee wages (excluding salaries to owners) – ($50,000) In addition, Nicole and Paula each received distributions of $10,000 from Magnolia. [question 3 of 3] If Nicole’s basis in her Magnolia stock at the beginning of the year was $40,000, what is her basis after considering the above items?
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