User Account

All Pages

What are the tax results to Rosa on the redemption

Assignment Help Accounting Basics
Reference no: EM132908080

Question - Hummingbird Corporation has 100 shares of common stock outstanding owned as follows: Juan, 50 shares and Rosa (an unrelated party), 50 shares. Juan and Rosa each paid $1,000 per share for the Hummingbird stock 10 years ago. Hummingbird has $100,000 of accumulated E & P and $20,000 of current E & P. Hummingbird distributes land held as an investment (fair market value of $80,000, adjusted basis of $30,000) to Rosa in redemption of 25 of her shares.

Required -

a. What are the tax results to Rosa on the redemption of her Hummingbird stock [include dollar amounts] (including type of gain or loss)?

b. What gain or loss results to Hummingbird Corporation on the redemption [include dollar amounts] (including type of gain or loss)?

Reference no: EM132908080

Questions Cloud

Compute the book value per share for one class of stock : Common stock P5 par value, 200,000 shares authorized, 100,000 shares issued and outstanding P 500,000. Compute the book value per share for one class of stock
What number of sorts of change are found in dna : What number of sorts of change are found in DNA which incorporates transformation of just one base? Give one nursing research that utilizes the utilization.
What is authentication-authorization and accounting : What is authentication, authorization, and Accounting?
How are companies preparing for remote incident response : How are companies preparing for Remote Incident Response? How should backup media be secured?
What are the tax results to Rosa on the redemption : What are the tax results to Rosa on the redemption of her Hummingbird stock [include dollar amounts] (including type of gain or loss)
Unit 10 Website Design and Development Assignment : Unit 10 Website Design and Development Assignment Help and Solution, Higher National Diploma in Computing - Assessment Writing Service
Prepare analytic flowchart of repair and services process : SmartTech Sdn Berhad is a growing company produce computer. Prepare analytic flowchart of the repair and services process in SmartTech Sdn Bhd.
Mass media law-legal devices : There are 6 processes or legal devices that a trial judge can use to try to ameliorate or remedy the effects of mass media publicity on a case.
What is the required rate of return on the stock : The historical return on equity (ROE) of 13 percent is expected to continue in the future. What is the required rate of return on the stock

Reviews

Write a Review

Accounting Basics Questions & Answers

  Difference between managerial and financial relationship

Question - What is the difference between a managerial relationship and a financial relationship when discussing independence

  Journalize the transactions of Trapper Jon Productions

Journalize the following transactions of Trapper Jon's Productions: June 23. Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on account

  How much taxable income does the partnership report

How much taxable income does the partnership report because of the disproportionate distribution to three partners? What is Hiram and Fred's basis in the art?

  Persuasive argument to help them see more possibilities

Your uncle is working in a company managing their investment center. You approach him with the sales of a large piece of equipment that can help the company save money in the end. Your uncle explains to you that they can't purchase the equipment b..

  What amount should halloran report for accounts receivable

What amount should Halloran report for accounts receivable, before allowances, at December 31, 2021? Allowance for uncollectible accounts balance, 12/31/2021

  Cornelius corndogs keeps all cash receipts in an empty box

each of the following situations has an internal control weakness. a. upside-down applications develops custom programs

  How much cash was paid for operating costs

Revenue earned from its trade customers in 2019 totaled 1790000. Total operating expenses were 1342000. How much cash was paid for operating costs

  Discuss the big bart line should be eliminated

Prepare an analysis showing whether the Big Bart line should be eliminated

  Compute the amounts of total dollar sales

MCU Phone Company sells its cordless phone for $300 per unit. Fixed costs total $540,000, and variable costs are $120 per unit.

  What the distinguishing characteristics of cloud computing

What are the distinguishing characteristics of cloud computing? What are some of the difference between ERP systems and accounting software from small companies

  Write report on chairpersons of financial reporting council

Write a report to the chairpersons of the Financial Reporting Council and the Australian Accounting Standards Board, commenting on the argument

  Suppose that youve been appointed as the speaker of the

assume that you have been appointed as the speaker of the house. you must deliver a speech about the current state of

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