What is the amount and type of income

Assignment Help Accounting Basics
Reference no: EM133102829

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 earnings 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 of income that Shareholder B must report as a result of the redemption of his stock?

Reference no: EM133102829

Questions Cloud

Professional development to teachers : What is the role of an assistant principal in offering professional development to teachers?
Combinations of marketing actions : You are the Marketing Manager for a new Holiday Resort located in Damai, Santubong. Sarawak. The resort has just been opened and is offering rooms for stays in
Making of a global latina : Should the company start training Brazilian executives and/or hire international ones to run its overseas operations as part of a continued internationalization
Medicare advantage and traditional medicare : What is the difference between Medicare Advantage and traditional Medicare? What is a special investigation unit (SIU)?
What is the amount and type of income : What is the amount and type of income that Shareholder B must report as a result of the redemption of his stock
Indicate the income expected in a given period : Give example to further illustrate an operating business that will clearly indicate the income expected in a given period.
Cross-platform app development : Critically evaluate different technology design and implementation options for developing mobile apps with rationale and recommendations
Variance Analysis : Why might managers find a flexible-budget analysis more informative than static-budget analysis?
General manager of protea hotel by marriott lusaka : You have been appointed as the new general manager of Protea Hotel by Marriott Lusaka. The hotel is not performing as expected and is not meeting its target. Yo

Reviews

Write a Review

Accounting Basics Questions & Answers

  The company experienced an unrealized decrease in the value

on january 1 2014 hammer company listed the following shareholders equity section of its balance sheetcontributed

  Mitch is in the 28 tax bracket he may receive a different

mitch is in the 28 tax bracket. he may receive a different tax benefit for a 2000 expenditure that is classified as a

  What is the maximum weekly profit

A plant has been constructed to manufacture a new product. Fixed costs amount to $8000 per week. What is the maximum weekly profit

  How labour and employment standards rarely change

An employee who permanently terminates employment during the year is owed accrued vacation for time earned but not taken during the year.

  Determine the cost of producing a helmet

Case - Armstrong Helmet Company. Determine the cost of producing a helmet. Compute the unit variable cost for a helmet

  Calculate amount of revenue that headlands should recognize

Headlands Ltd., an equipment manufacturer, sold and delivered a piece of equipment to a buyer for $108,000, Calculate amount of revenue that Headlands recognize

  How many boxes does dandy candy have to sell to break even

How many boxes does Dandy Candy have to sell to break even?

  Difference does or does not exist between net income

Prepare an income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.)

  Philly construction specializes in designing and building

philly construction specializes in designing and building custom homes. business has been excellent and it projects a

  How increasing cost of chocolate impact hershey variances

How will the increasing cost of chocolate impact Hershey's variances? Dark chocolate uses more cocoa beans per ounce than milk chocolate

  Gibraltar corporation has 200000 shares of 9 50 par value

gibraltar corporation has 200000 shares of 9 50 par value cumulative preferred stock authorized 80000 shares issued and

  Discuss all earnings to be distributed to stockholders

Assume you expect a company's net income to remain stable at $1,200 for all future years, and you expect all earnings to be distributed to stockholders

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