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Alenkinab [10]
2 years ago
8

A corporation declares a 15% stock distribution. The shareholders have a choice between the stock or $150 in cash per each share

. The fair market value (FMV) of the stock is $160 per share. Shareholder A owns 600 shares and has a basis in the stock of $33,000. Shareholder B owns 400 shares and has a basis in the stock of $36,000. The corporation has
$30,000 of earnings and profits (E&P). What is the character of the distribution for Shareholder B if both shareholders elect to receive cash?
Business
1 answer:
alekssr [168]2 years ago
6 0

The character of the distribution for Shareholder B if both shareholders elect to receive cash is a <u>return of capital </u>to the shareholders (capital dividend).

<h3>What is the capital dividend?</h3>

A capital dividend is a payment that is drawn from a company's paid-in-capital or shareholders' equity instead of from earnings.

When capital is returned to shareholders, their investment bases in the stock reduce, thereby, increasing their capital gains and the subsequent taxes.

Thus, the character of the distribution for Shareholder B if both shareholders elect to receive cash is a <u>return of capital </u>to the shareholders (capital dividend).

Learn more capital dividends at brainly.com/question/27456116

#SPJ1

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Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food ite
Anettt [7]

Answer:

Letter e is correct. Idea generation.

Explanation:

Outback through customer survey seeks to identify which items meet the needs of your target audience so you can expand your food product line. The Outback Idea Generation technique is a technique used by companies to achieve the innovation needed to develop new activities and organizational improvements, as well as to solve problems and opportunities more efficiently and systematically.

3 0
3 years ago
Behaving in an acceptable manner within a workplace environment is refered to as workplace etiquette.
alexandr402 [8]
True because workplace etiquette is behaving with manners and kindness
8 0
3 years ago
Read 2 more answers
Hich pricing strategy involves setting a high price for an exclusive, high-end product?
Sidana [21]
Yes, this encourages the buyer to pay more for an item especially if it is by a well known branded. This gives them to opportunity to brag and boast with their purchase. Also when the product is well known consumers are going to try their absolute best to buy it, this is going to make the product scare, hence increasing its price.
3 0
2 years ago
Larsen Corporation reported $200,000 in revenues in its 2021 financial statements, of which $66,000 will not be included in the
Anastaziya [24]

Answer:

$16,500

Explanation:

The computation of the deferred income tax liability for the year 2021 is shown below:

= Amount not included in tax return × enacted tax rate for 2022 year

= $66,000 × 25%

= $16,500

Simply we multiplied the amount not included with the enacted tax rate for 2022 year so that the correct amount could come

And, we ignored the other information given in the question

5 0
3 years ago
Durable goods $3,000 Services 6,000 Business purchases of capital goods 400 Fixed investment 850 Exports 600 Imports 800 Nondura
ASHA 777 [7]

Answer:

$9,700

Explanation:

The computation of the consumption is shown below;

= Durable goods + Services + Non-durable goods

= $3,000 + $6,000 + $700  

= $9,700  

We simply added the durable goods, services and the non-durable goods so that the consumption could be come

Hence, the consumption is $9,700

Therefore the same is to be considered

6 0
3 years ago
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