Business, 21.04.2020 23:22 aallyssabrown0120

In 1999, Franklin Johnson, a corporate tax guru, became a shareholder in FurtCorp, Inc., when he purchased 1,000 shares of its stock. Two years ago, FurtCorp purchased $75 million in THB, Inc., stock. Due to changes in the market, the value of the stock has since dropped to $25 million. Franklin recently learned that FurtCorp's Board of Director's has decided to distribute its shares of THB stock to shareholders in the form of a dividend. After carefully analyzing the decision, Franklin has determined that FurtCorp would gain a much larger benefit by taking the depreciation in capital as a tax write-off. Franklin presented his findings to the CEO of FurtCorp, and a special meeting was set before the Board. The Board reviewed, but ultimately rejected, Franklin's proposal and moved forward with the distribution of the dividends. Now, Franklin is threatening to sue FurtCorp's board. How should the Board respond

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In 1999, Franklin Johnson, a corporate tax guru, became a shareholder in FurtCorp, Inc., when he pur...

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