User Account

All Pages

How much capital gain will he recognize on the sale

Assignment Help Accounting Basics
Reference no: EM133060339

Question - Lone Star Company is a calendar-year corporation, and this year Lone Star reported $120,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $15,600. At the beginning of the year, Lone Star's sole shareholder was Matt McCon. Lone Star declared $34,800 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31.

a) How much of the $139,200 in total distributions will be treated as dividends?

b) Suppose that Matt sold half of his shares to Chris Coop on June 1st for $50,000. How much dividend income will Matt recognize this year?

c) If Matt's basis in his Lone Star shares was $8,000 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star?

Reference no: EM133060339

Questions Cloud

What amount of this expense would be included in the budget : The actual amount of the fixed expense was $10,640. What amount of this expense would be included in the company's planning budget
Prepare a trial balance with the accounts arranged : Prepare a trial balance with the accounts arranged as illustrated in the chapter, and fill in the missing amount for retained earnings
What would you suggest to Paul Pogba : What would you suggest to Paul Pogba based on your analysis regarding the new gold mine? Whether should they take this project
By what amount and direction during that same period : If total liabilities decreased by $25,000 and owner's equity increased by $5,000 during a period of time, By what amount and direction during that same period
How much capital gain will he recognize on the sale : If Matt's basis in his Lone Star shares was $8,000 at the beginning of the year, how much capital gain will he recognize on the sale and distributions
What is the expected yield on the bond : The current price of the bond is $900. If the investor decides to buy the bond now, what is the expected yield on the bond
What is amount of replenishment under imprest fund system : On April 24, the company wrote a check to replenish the fund. What is the amount of replenishment under the imprest fund system
What will be the approximate percentage change : What will be the approximate percentage change in the price of a bond with a duration of 8.2 years, which is trading at a yield of 8.1%
What is the price that Toodyay Investments will have to pay : The bill has a face value of $375 000 and the current market yield on this bill is 3.2% pa. What is the price that Toodyay Investments will have to pay

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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