Answered: Moore Corporation has earned $205,500…

Moore Corporation has earned $205,500 after tax. The return on equity for Moore Corporation is 18%. What is Moore's stockholders' equity? (format as $1,234.56)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 23EB: Bastion Corporation earned net income of $200,000 this year. The company began the year with 10,000...

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

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Moore Corporation has earned $205,500 after tax. The return on equity for Moore Corporation is 18%. What is Moore's stockholders' equity? (format as $1,234.56)

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