Answer:
The long term capital gain= $30000-$25000
The long term capital gain= $5000
The basis in stock will be zero after the distribution.
Explanation:
Step 1 of 3
Tax treatment of amount distributed to shareholders:
The amount received as distribution to a shareholder under S Corporation is equal to the cash and fair market value of property distributed. The distribution is considered as tax-free to the limit that it does not exceed shareholder’s basis in the company’s stock. Any amount received in excess of basis will be treated as capital gain.
Step 2 of 3
However, taxation depends whether S Corporation has ever been a C Company or it posses’ accumulated earnings and profits. If it was never a C Corporation or doesn’t holds AEP then distribution equals to basis of share in S Corporation is a tax free gain for shareholder. Gain over and above basis is taxed as capital gains.
Step 3 of 3
In the given problem, C is a shareholder in S Corporation. He receives $30,000 as cash distribution. His basis in stock is $25,000. The distribution up to basis of stock is tax free distribution and above that is charged to capital gains. It is as follows-
Thus, capital gain of is taxable in hands of C. His basis in S Corporation will reduced to zero as entire distribution is over and above basis of his stock.
Answer: closed shop
Explanation:
From the question, we are informed that in the late 1930s management at Atalanta Industries agreed to hire only those workers who were already members of the Electrical Union.
It should be noted that here, Atlanta agreed to a type of arrangement known as closed shop. This occurs when the workers have to belong to a particular union before they'll be employed. This was legal in 1930 but it was later declared illegal by Taft Hartley Act.
Hi Laight6069,
The telling style of leadership has a <span>high-task, low-relationship feature.</span>
A market economy serves as an economic system in which economic activities is been controlled by individuals.
<h3>What is
market economy?</h3>
market economy serves as the economy that that gives country's individual citizens and businesses to be able to make decisions .
This decision could be pricing of goods and services which are been controlled by the interactions of a country's individual citizens.
COMPLETE QUESTION:
Explain market place economy
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Four perspectives are integrated to form the balanced scorecard framework. the financial perspective focuses on the view of the firm by the customer.
The four perspectives of the Balanced Scorecard are Learning and Growth, Business Process, Customer Perspective, and Financial. These four areas, also called legs, form the company's vision and strategy.
A strategy-based performance management system that typically identifies goals and actions from four different perspectives: financial perspective, customer perspective, process perspective, and learning and financial perspective.
The Balanced Scorecard helps you strategically manage your organization. The Balanced Scorecard is based on four perspectives including financial, business process, customer, and organizational capabilities. This allows companies to discover their shortcomings and develop strategies to overcome them.
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