Distribution in redemption of the stock

Assignment Help Other Subject
Reference no: EM13186324

Henry, Emmy, and Frannie, unrelated individuals, own all of the stock in New Corporation with earnings and profits of $1,200,000 as follows: Henry own 1,300 shares; Emmy owns 400 shares; and Frannie owns 300 shares. New Corporation redeems 300 of Henry's shares with a basis of $60,000 for $450,000. With respect to the distribution in redemption of the stock:

a. Henry has a capital gain of $390,000. 
b. Henry has dividend income of $450,000. 
c. Henry has dividend income of $390,000.
d. Henry has a capital gain of $450,000. 
e. None of the above.

Reference no: EM13186324

Questions Cloud

Derive the demand curves for ggc''s product in market : Greener Grass Company (GGC) competes with its main rival, Better Lawns and Gardens (BLG), in the supply and installation of in-ground lawn watering systems in the wealthy western suburbs of a major east-coast city. Last year, GGC's price for the t..
How many should be news stories : how many pages should be advertising, and how many should be news stories?
State contaminated with unreacted cyclohexanol : spectroscopy to determine whether your product is contaminated with unreacted cyclohexanol?
Complete the true percentage relative error : Fit a second order Newton's interpolating polynomial to estimate log 10 using the data x=8, 9, and 11. Complete the true percentage relative error.
Distribution in redemption of the stock : Henry own 1,300 shares; Emmy owns 400 shares; and Frannie owns 300 shares. New Corporation redeems 300 of Henry's shares with a basis of $60,000 for $450,000. With respect to the distribution in redemption of the stock
How many of each type of calculator was ordered : the everton college store paid $1824 for an order of 52 calculators. The store paid $ 8 for each scientific calculator. The others, all graphing calculators, cost the store $ 52 each. How many of each type of calculator was ordered?
State sodium acetate and potassium sulfide : Consider the reaction when aqueous solutions of sodium acetate and potassium sulfide are combined.
What is the roller angular speed : a printing press has a roller 22 inches in diameter. A point on the roller's surface moves at a speed of 109 feet per second. What is the roller's angular speed?
How did the cold war impact americans at home : How did the 'Cold War' impact Americans at home? Cite HUAC, McCarthyism, Smith Act, and McCarran Act. Cite?

Reviews

Write a Review

Other Subject Questions & Answers

  Sources of credible nutritional information

What criteria can the readers use to determino sources of credible nutritional information?

  Trespassing the personal property

Does the definition of trespass to personal property in your text differ from the California definition of trespass to computer services? How?

  Understanding about knowledge-skills-abilities

The given set of questions test your understanding about knowledge (K), skills (S), abilities (A) and the other personal characteristics (O) in the job analysis.

  Reason for separate justice system for juvenile offenders

Why is there a juvenile justice system? What is the state's duty when juveniles offend?

  Transmission belts pass over a double-sheaved pulley

Two transmission belts pass over a double-sheaved pulley that is attached to an axle supported by bearings at A and D. The radius of the inner sheave is 125 mm and the radius of the outer sheave is 250 mm.

  Tolstoys portrayal of ivan ilych''s transformation

Compare Tolstoy's portrayal of Ivan Ilych's transformation to St. Augustine's portrayal of his transformation and do you agree with Tolstoy's understanding of the way human beings work?

  Myelin-central nervous system

Describe Myelin? What does it do? Which cells provide it in the Central Nervous System?

  Development office when referencing events

We used two terms in our development office when referencing events: fundraisers and friend-raisers. If you are a non-profit CEO, is there a difference?

  Explain problem or issue which occurs in workplace-school

Think of common problem or the issue which occurs in workplace, school, gym, or elsewhere. For instance, people smoking in restaurants.

  Corporate strategy

What is adidas's corporate strategy? Was there a common strategic approach used in managing the company's lineup of sporting goods businesses prior to its 2005-2006 restructuring? Has the corporate strategy changed with restructuring?

  Policy paper assitance-us international affairs

Hello need to do an outline for a policy point paper on International Affairs and its affect on US policy. I'm having a hard time coming up with a topic.

  Analysis for l''avventura michelangelo antonioni

Need film analysis for "L'avventura, Michelangelo Antonioni,1960" It would include these main analysis subjects from the list; "cinematography, mise en scene, editing, sound" or you can add things that you think significant, you can refer to michel..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd