What is the amount and type

Assignment Help Accounting Basics
Reference no: EM133166247

Question - Shareholders A and B own 400 shares each of the outstanding stock of a corporation. Shareholder C owns the remaining 600 shares. None of the shareholders are related The Corporation has 500,000 in current earning and profits.

The corporation redeems 150 shares from shareholder a and 100 shares from shareholder b for 1,000 each shareholder A's basis in her redeemed shares is 90,000 and shareholder B's basis in his redeemed shares is 35,000

What is the amount and type if income that shareholder A must report as a result of the redemption of her stock?

A. 60,000 dividend

B. 60,000 capital gain

C. 150,000 capital gain

D. 150,000 dividend

Reference no: EM133166247

Questions Cloud

Examine the functional areas and issue : Examine the following functional areas and issue central strategies implementation - Management and Research and Development
Recent perceptions of epigenetics : Recent perceptions of epigenetics, then offers a new definition that "serves as an antidote to the idea that we are hard-wired by our genes
What would be the dividend yield : Currently Digby is paying a dividend of $18.95 (per share). If this dividend were raised by $3.64, given its current stock price what would be Dividend Yield
What is this individual recognized gain on the transaction : The individual received the Oregon land with an fmv of 210,000 and 80,000 cash. What is this individual recognized gain on the transaction
What is the amount and type : What is the amount and type if income that shareholder A must report as a result of the redemption of her stock
How will the capital losses be accounted : A taxpayer has two transactions involving the sale of capital assets during the year. How will the capital losses be accounted
Discuss the political risk present in cuba : Discuss the political risk present in Cuba. What are the implications for companies that are considering investing in the country?
What is causing confusion for the patient : You are a newly hired health insurance specialist at a small medical practice, and you are responsible for completing and submitting CMS-1500 claims.
Managing personal finances : 1. Why is gathering information the first step in managing personal finances? Why is it important to have accurate information about your personal finances?

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.

  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!

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