Business, 04.11.2019 23:31 savid88061

Rose has a $20,000 basis in the 60% of the parent corporation stock that she owns. parent corporation owns a 70% interest in child corporation. parent and child have current and accumulated e& p balances of $25,000 and $40,000, respectively. in return for $15,000, rose sells 10% of the parent corporation stock to child corporation. what is the impact of the transaction on rose? a) rose will recognize a $5,000 capital gain. b) rose will be treated as having received a $15,000 dividend distribution from child corporation. c) rose will be treated as having sold stock to parent corporation and recognize a $15,000 capital gain. d) rose will be treated as having received a $15,000 dividend from parent corporation.

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Rose has a $20,000 basis in the 60% of the parent corporation stock that she owns. parent corporatio...

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