Question Continuation
Determine the tax consequences of the redemption to Tammy and to Broadbill under the following independent circumstances.
Tammy and Jeremy are grandmother and grandson.
Answer:
See Explanation Below
Explanation:
Given.
Tammy number of shares = 300
Yvette number of shares = 400
Jeremy number of shares = 300
Each of the shareholders paid $50 per share.
Tammy's Ownership is calculated by; (300+300)/1000
= 600)1000
= 60% ---- before redemption
Tammy's Ownership = (150 + 300)/850
Tammy's ownership = 450/850
Tammy's Ownership = 52.94% ---- after redemption
The constructive ownership of Tammy is more than 80%, this means that the distribution is considered as income to Tammy
Answer:
O Stands for offer , A stands for acceptance , C stands for consideration , K stands for contract . An offer requirement, a contract and acceptance have it’s own thing.
Explanation:
The normal procedure under the misstatement of age provision
in regard to the payment of the death claim is that the procedure would be
reduced based on the premium in which whatever it would have been if this has
been purchased at the age of fifty nine years old.
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Answer:
true
Explanation:
The transfer payment comprises of both a donor as well as a receiver, with the sender giving up something that is of worth and receiving anything in return, unlike the swap agreement that equally benefits all the parties concerned.
Transfer payments cover Social Security, Medicaid, unemployment compensation, social programs and assistance. They should not be added in GDP, as they are not payments for goods or services, but rather ways to distribute money for social purposes.
