What is the e and p balance for shoebiz and for park

Reference no: EM132028120

Question: Park Corporation distributes its shoe manufacturing line of business to the newly created ShoeBiz Corporation in a transaction qualifying as a "Type D" spin-off reorganization. Before the distribution, Park is worth $4,000,000 and its E & P balance is $630,000. After the spin-off, Park's value is $3,000,000, and ShoeBiz's value is $1,000,000. After the "Type D" reorganization, what is the E & P balance for ShoeBiz and for Park?

As a result, ShoeBiz starts with an E & P balance of $_________, and Park retains an E & P balance of $_________.

Reference no: EM132028120

Questions Cloud

Find what is the maximum you can spend on the new car : Your parents agree to pay half of the purchase price of a new car when you graduate from college. You will graduate and buy the car two years from now.

What was the percentage change in his annual earnings : This year he earned the same amount but received a $2,000 bonus. What was the percentage change in his annual earnings

Find the amount of money in the account : You deposit ?$4000 into a savings account at a bank that has a rate of 4?% compounded monthly. Find the amount of money in the account after 9 years.

Calculate cost of goods sold and ending inventory : A company purchases inventory during the year in 4 batches, Calculate cost of goods sold and ending inventory under the FIFO method

What is the e and p balance for shoebiz and for park : Park Corporation distributes its shoe manufacturing line of business to the newly created ShoeBiz Corporation in a transaction qualifying as a "Type D".

Simple interest on unpaid tax : Jackson's property tax is ?$656.85 and is due April 5. He does not pay until July 30. The county adds a penalty of 9.3?% simple interest on unpaid tax.

Establish a fund for grandson college education : What lump sum must they deposit at a 10.7?% annual interest? rate, compounded quarterly?, in order to have ?$30,000 in the fund at the end of 15 ?years?

What bond payable amount will park report : Park Corporation is planning to issue bonds with a face value of $720,000 and a coupon rate of 7.5 percent. The bonds mature in 4 years and pay interest.

Analyze value of the howard stern show to sirius xm radio : Describe the key benefits of the acquisition to Sirius and XM. Analyze the value of the Howard Stern's show to Sirius XM Radio

User Account

All Pages