Hannah, greta, and winston own the stock in redpoll corporation (e & p of $900,000) as follows: hannah, 600 shares; greta, 400 shares; and winston, 1,000 shares. greta is hannah’s daughter, and winston is hannah’s brother. redpoll corporation redeems 400 of hannah’s shares (basis of $55,000) for $240,000. hannah purchased the stock three years ago as an investment. with respect to the stock redemption, hannah has
a. long-term capital gain of $185,000.b. long-term capital gain of $240,000.c. dividend income of $185,000.d. dividend income of $240,000.e. none of the above.

Identify and describe a variety of performance rating scales that can be used in organizations including graphical scales, letter scales, and numeric scales.

Mordica company identifies three activities in its manufacturing process: machine setups, machining, and inspections. estimated annual overhead cost for each activity is $156,960, $382,800, and $84,640, respectively. the cost driver for each activity and the expected annual usage are number of setups 2,180, machine hours 25,520, and number of inspections 1,840. compute the overhead rate for each activity. machine setups $ per setup machining $ per machine hour inspections $ per inspection

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.