On January 1, Year 1, Carrot, an individual, paid $24,100 for 5 percent of the stock in Root Corp., an S corporation. In November, he loaned $12,950 to Root Corp. in return for a promissory note. Root Corp. generated a $920,000 operating loss in Year 1. Root Corp, generated $427,000 ordinary business income in Year 2. Required:
a. How much of Ginger's share of this income is included in his Year 2 taxable income?
b. Compute Ginger's basis in his Root Corp, stock and his Root Corp, note at the end of Year 2
c. How would your answers to parts a and b change if Root Corp's ordinary business income was only $239,000?

Sara is a manager at a restaurant with employees from different cultural backgrounds. which action of sara could employees perceive as an act of favoritism?

When color is used on a topographical drawing, black is used to represent what?

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?