What are amos and thomas adjusted bases in the show corp

Assignment Help Financial Accounting
Reference no: EM132966032

Problem 1: Amos and Thomas form the Show Corporation during the current year.  Amos owns 40% of Show's stock, Thomas owns 20%, and unrelated parties own the remaining 40%. Amos paid $50,000 for his shares, and Thomas paid $20,000. Amos and Thomas are responsible for Show's daily operations and serve as co-chief executive officers. During the current year, Show Corporation has an operating income of $60,000 and pays out $10,000 in dividends. What are Amos' and Thomas's adjusted bases in the Show Corporation stock if the Show Corporation is organized as a C corporation?

Group of answer choices

Option 1: $74,000 for Amos and $32,000 for Thomas
Option 2: $50,000 for Amos and $25,000 for Thomas
Option 3: $50,000 for Amos and $20,000 for Thomas
Option 4: $70,000 for Amos and $20,000 for Thomas

Reference no: EM132966032

Questions Cloud

What is the asset class and macrs recovery period : Rose buys a new helicopter. What is the asset class and MACRS recovery period for the new helicopter that Rose buys? 00.21 with a MACRS recover period of 5 year
Minimise the potential for harm : What are three strategies that can be used to minimise the potential for harm?
What is latham basis in the building : A loan of $500,000 is needed to finance the construction, and interest of $40,000 is paid during the year. What is Latham's basis in the building?
Kotter first four steps to diagnose : In our text Our Iceberg Is Melting, Kotter provides a story-based scenario of a situation needing a change intervention. Review the reading from our text and cr
What are amos and thomas adjusted bases in the show corp : What are Amos' and Thomas's adjusted bases in the Show Corporation stock if the Show Corporation is organized as a C corporation?
What is rufus adjusted basis in the land : After the gift, what is Rufus' adjusted basis in the land? Rufus owns 12 acres of land he purchased as an investment for $5,000. He spent an additional $39,000
What is the gross selling price of the land : What is the gross selling price of the land? A professional miniature golf team ("Cot's Cottage Men") owns a course with a fair market value of $100,000
What is depreciable basis in the cash registers : If Sav-On makes the Section 179 election to expense $1,040,000 of the asset's cost, what is its depreciable basis in the cash registers?
What is anne marie gain when sells the shares : Grandpa paid $4,000 for them ten years earlier. Assuming that there isn't any gift tax, what is Anne Marie's gain when she sells the shares for $18,000?

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much would marston be willing to pay for conroy

If Conroy has $10 million in debt outstanding, how much would Marston be willing to pay for Conroy? Enter your answer in millions.

  Explain which economy would choose to invest in

On the other hand, in the second economy, stock returns are independent. Explain in three hundred words, which economy you would choose to invest in?

  What is the project npv and irr and decision and why

Century Contracting is thinking of opening a new warehouse, What is the project's NPV? IRR? What is your decision and why? Briefly discuss results.

  Acid test is more stringent measure-current ratio

The ____ ratio, sometimes called the "acid test," is a more stringent measure of ____ than the current ratio.

  What is an Accounting Information System

What is an Accounting Information System (AIS)? What are the four functions associated with payroll activities? What Are the Basic Phases of Accounting

  Identify the potentially dilutive securities

Identify the potentially dilutive securities which could be included in the computation of diluted earnings per share

  Compute the effective tax rate

XYZ Corporation has a taxable income of 200,000. It pays its entire after-tax income to tis sole shareholder, and individual. Compute the effective tax rate on the $200,000 income if the dividend is taxed at 15%, and if it is taxed at 35%.

  How financial theory grasps corporate culture

Could you explain the benefits of debt? Could you make a list of pros and cons of increasing debt? How financial theory grasps corporate culture

  Which is true about the purchase of a protective

Which is true about the purchase of a protective put at a higher excercise price relative to a lower excercise price? insurance us more costly

  How much dividend may the preference equity holders

A dividend rate of 10% and redeemable for $80/share, are sold for $75/share, how much dividend may the preference equity holders expect to receive

  How many units must the company sell to break even

How many units must the company sell to break even? A company sells a product which has a unit sales price of $8.80, unit variable cost of $6.30

  What agency status between corporate officer and corporation

Supplier for the purpose of raw materials for its corporation. What is the agency status between the corporate officer and the corporation?

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