Business, 15.10.2019 23:00 stinematesa

Aggie corporation made a distribution of $500,000 to rusty cedar in partial liquidation of the company on december 31 of this year. rusty, an individual, owns 100 percent of aggie corporation. the distribution was in exchange for 50 percent of rusty’s stock in the company. at the time of the distribution, the shares had a fair market value of $200 per share. rusty’s income tax basis in the shares was $50 per share. aggie had total e& p of $8,000,000 at the time of the distribution.

(a) what is the amount and character (capital gain or dividend) of any income or gain recognized per share by rusty as a result of the partial liquidation?
(b) assuming aggie made no other distributions to rusty during the year, by what amount does aggie reduce its total e& p as a result of the partial liquidation?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 05:30

The hartman family is saving $400 monthly for ronald's college education. the family anticipates they will need to contribute $20,000 towards his first year of college, which is in 4 years .which best explain s whether the family will have enough money in 4 years ?

Answers: 1

Answer

Business, 22.06.2019 16:30

Why are there so many types of diversion programs for juveniles

Answers: 2

Answer

Business, 22.06.2019 20:40

On january 1, 2017, pharoah company issued 10-year, $2,020,000 face value, 6% bonds, at par. each $1,000 bond is convertible into 16 shares of pharoah common stock. pharoah’s net income in 2017 was $317,000, and its tax rate was 40%. the company had 97,000 shares of common stock outstanding throughout 2017. none of the bonds were converted in 2017. (a) compute diluted earnings per share for 2017. (round answer to 2 decimal places, e.g. $2.55.) diluted earnings per share

Answers: 3

Answer

Business, 22.06.2019 21:10

The blumer company entered into the following transactions during 2012: 1. the company was started with $22,000 of common stock issued to investors for cash. 2. on july 1, the company purchased land that cost $15,500 cash. 3. there were $700 of supplies purchased on account. 4. sales on account amounted to $9,500. 5. cash collections of receivables were $5,500. 6. on october 1, 2012, the company paid $3,600 in advance for a 12-month insurance policy that became effective on october 1. 7. supplies on hand as of december 31, 2010 amounted to $225. the amount of cash flow from investing activities would be:

Answers: 2

Answer

You know the right answer?

Aggie corporation made a distribution of $500,000 to rusty cedar in partial liquidation of the compa...

Questions