3. In year 3, the corporation liquidates their operations and the following information is provided Accumulated E and P 150,000 Fair Market value of building $550,000 Basis of stock: Jill $550,000, John 500,000, Paul 27,500 The distribution is as follows: Jill receives $525,000, Paul receives $50,000 and John receives the building in a total liquidation process. 12. What are the tax ramifications to J and J Corporation

Shareholders Stock Held         % to Total Stock  

Jill                    $500,000                48.66%  

John                $500,000                 48.66%  

Paul                 $27,500                    2.68%  

Total Stock     $1,027,500             100.00%

Total Distribution

Jill           $525,000

John       $550,000

Paul        $50,000

Total       $1,125,000

Tax Ramifications to J and J Corporation

Shareholder Base                                 $1,027,500

Distribution                                            $1,125,000

Capital Loss to J and J Corporation   $97,500

Since distribution to shareholders was more than the contributions by shareholders, J and J Corporation will bear the Capital Loss as a result of such distribution.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; only identify and interpret trends in the marketplace;