How will Napoli be taxed on the redemption of her stock

Assignment Help Accounting Basics
Reference no: EM133037999

Question - The 100 shares of outstanding common stock of Florence corporation are owned by Napoli and Pisa. Napoli owns 45 shares and Pisa owns 55 shares. The shareholders acquired their stock in 2019 and neither shareholder is related to the other. Each shareholder has a basis in her stock of $100 per share. During the tax year of 2020, Napoli sold 15 of her shares of stock back to Florence corporation for $100,000. Assuming that Florence corporation has a substantial earning and profits. How will Napoli be taxed on the redemption of her stock.

a. Dividend income of $8,500

b. Dividend income of $10,000

c. Long term capital gain of $8,500

d. Long term capital gain of $10,000

Reference no: EM133037999

Questions Cloud

Case study-the marriott data breach : In November 2018, Marriott, the world's largest hotel company, announced that one of its reservation systems had been hacked. With over 7,000 properties and mor
Reducing juvenile delinquents return to crime : Does educational outreach play a role in reducing juvenile delinquents' return to crime in certain Counties ?
What is the amount of the inventory at the end of the year : The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end
General partnership and limited liability company : Discussing how to form the new business, and have narrowed their choices to a general partnership or a limited liability company (LLC). What would you advise
How will Napoli be taxed on the redemption of her stock : Assuming that Florence corporation has a substantial earning and profits. How will Napoli be taxed on the redemption of her stock
Case-the brand new brand : 'The future is bright, the future is orange' sounds somewhat perplexing without any context. Audiences in older age brackets around the world would certainly fi
Rehabilitating and supporting incarcerated people : The criminal justice field has witnessed the development of numerous faith-based initiatives aimed at rehabilitating and supporting incarcerated people
Determine the portfolio expected return and beta : For a portfolio consisting of 20% of security A, 45% of security B, and 35%, determine the portfolio's expected return and beta
Compare the current us healthcare system : Assignment: Review the health policies of each of the China. Compare and contrast with the current U.S. healthcare system. Answer the following questions:

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the amounts to be reported by cameron

The buildings have a remaining life of 5 years. Determine the amounts to be reported by Cameron

  What is the minimum taxable income

Computer Ltd. generated the following data for its December 31, 2018 taxation year: Capital Gains $35,000. What is the minimum taxable income

  Determine the maximum stock level and re-order level

The following information was extracted from the books of Danex Holdings regarding its stocks: Determine the Maximum stock level and Re-order level

  Describe the role of financial accounting business

Describe the role of financial accounting in contemporary business. Also, describe the role Generally Accepted Accounting Principles

  Computing bad debt expense

The balance in Accounts Receivable was $200,000 at 1/1 and $240,000 at 12/31. At 12/31/10, Smithson estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2010?

  Williams companys direct labor cost is 30 percent of its

williams companys direct labor cost is 30 percent of its conversion cost. if the manufacturing overhead for the last

  Journal entry of uncollectible accounts

Sullivan Co.'s accounts receivable show the following balances by age: Prepare the adjusting journal entry.

  Prepare the analysis to substantiate goodwill if any

Pardata purchased all of the shares of Subco for $30 million in cash. The balance sheets of Pardata and Subco just after the acquisition

  Determine the book value of common stock

Use this information to determine the book value of Common Stock as of end of the FY 2017. (Round your answer to the nearest penny)

  What are the possible benefits to the company of having a

what are the possible benefits to the company of having a share election scheme? the solvency test must be satisfied by

  This cost included the following expenditures

Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2011.

  Indicate the amount to be included in net income

Indicate the amount to be included in net income for tax purposes in respect of each of the dividends received by Dakotah in 2019

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