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sdas [7]
3 years ago
14

Hoosier Corporation declared a 2-for-1 stock split to all shareholders of record on March 25 of this year. Hoosier reported curr

ent E&P of $600,000 and accumulated E&P of $3,000,000. The total fair market value of the stock distributed was $1,500,000. Barbara Bloomington owned 1,000 shares of Hoosier stock with a tax basis of $100 per share. How does stock devidend effect Hoosier's accumulated E&P at the beginning of 2010?
Business
1 answer:
BaLLatris [955]3 years ago
6 0

Answer:

Hoosier does not adjust its E&P for the stock dividend because it is not taxable to the shareholders.

Explanation:

Hoosier does not adjust its E&P for the stock dividend because it is not taxable to the shareholders. This conclusion is based on the definition of taxable dividends.

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4 0
2 years ago
Which of the following is a potential operating instrument for the central​ bank? A. The M1 money supply B. The monetary base C.
Angelina_Jolie [31]

Answer:

The correct answer is B. The monetary base.

Explanation:

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7 0
3 years ago
Properly designing a protective packaging system requires three important kinds of information. Which of the following is not on
lutik1710 [3]

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value of the product to be protected

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4 0
3 years ago
Which stage in project management involves team members working on the assigned tasks as described in the project plan?
vagabundo [1.1K]

Answer:

C.  execution

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3 0
3 years ago
Identify which of the following statements is true.
Papessa [141]

Answer:

B. If both the current and accumulated E&P have deficit balances, a corporate distribution cannot be characterized as a dividend.

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6 0
3 years ago
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