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Novosadov [1.4K]
3 years ago
10

Family​ Corporation, a corporation controlled by​ Buddy's family, redeems all of​ Buddy's stock. For the redemption to be treate

d as a​ sale, which one of the following conditions must be​ met? A. Buddy cannot acquire an​ interest, even by​ inheritance, for 10 years unless the bequest was made prior to the redemption. B. Buddy must have purchased the redeemed stock from a person whose stock ownership would be attributed to Buddy. C. Buddy cannot be a creditor of the corporation after the redemption. D. Buddy cannot be an officer of the corporation after the redemption.
Business
1 answer:
Bond [772]3 years ago
4 0

Answer:

C. Buddy cannot be a creditor of the corporation after the redemption.

Explanation:

"A stock redemption that terminates a shareholder’s entire stock ownership in a corporation will qualify for sale or exchange treatment under § 302(b)(3). The attribution rules generally apply in determining whether the shareholder’s stock ownership has been completely terminated. However, the family attribution rules do not apply to a complete termination redemption if the following conditions are met:

   The former shareholder has no interest, other than that of a creditor, in the corporation for at least 10 years after the redemption (including an interest as an officer, director, or employee).

   The former shareholder files an agreement to notify the IRS of any prohibited interest acquired within the 10-year period and to retain all necessary records pertaining to the redemption during this time period."

Reference: South-Western, Thomson. “Chapter 5.” To Qualify for Sale or Exchange Treatment, a Stock Redemption Generally Must Result in a Substantial Reduction in a Shareholde, 2005,

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The underground economy refers to used product sellers who sell in secondary markets. It is thought to make up ________ of the U
hammer [34]

The underground economy refers to used product sellers who sell in secondary markets. It is thought to make up 3-30% of the US gross national product.

Explanation:

Household production refers to goods and services people produce for themselves.

Underground economy refers to buying and selling of goods and services that are concealed from the government to avoid taxes or regulations or because the goods and services are illegal.

If you know how much the economy works for a brief time, it doesn't matter.

If one knows how goods and services are produced for a decade or further, it might be more important to omit domestic production and development in the underground economy.

7 0
3 years ago
Ron wants to start a digital marketing firm. He presents his business plan to Reshmie, who agrees to provide some funds for the
Lady bird [3.3K]

Reshmie is called a <u>shareholder </u>of Ron Digital Marketing firm.

<h3>Who is a Shareholder?</h3>

A shareholder is an individual person, firm, or institution who holds at least one share of a company's equity.

Because shareholders effectively own the firm, they profit from its success. These benefits take the shape of improved stock values or financial earnings given as dividends.

When a firm loses money, the share price lowers automatically, causing shareholders to lose money or incur losses in their holdings.

Learn more about shareholders here:

brainly.com/question/25686394

5 0
2 years ago
Following are the January transactions:
Anarel [89]

Answer:

The journal entries to record the transactions are given below.

Received a $665 deposit from a customer who wanted her piano rebuilt in February.

Debit Cash Asset                             $ 665

Credit Advances from customers   $ 665

Rented a part of the building to a bicycle repair shop; $685 rent received for January.

Debit Cash Asset          $ 685

Credit Rental income    $ 685

Delivered five rebuilt pianos to customers who paid $18,675 in cash.

Debit Cash Asset      $ 18,675

Credit Sales income  $ 18,675

Delivered two rebuilt pianos to customers for $9,600 charged on account.

Debit Account Receivable Asset   $ 9,600

Credit Sales Income                        $ 9,600                        

Received $8,000 from customers as payment on their accounts.

Debit Cash Asset                 $ 8000

Credit Receivable Asset      $ 8000

Received an electric and gas utility bill for $395 for January services to be paid in February.

Debit Utility Expense       $ 395

Credit Payable Liability    $ 395

Ordered $1,255 in supplies.

No entry required

Paid $2,600 on account in January.

Debit Payable Liability   $ 2,600

Credit Cash Asset          $ 2,600

Paid $12,200 in wages to employees in January for work done this month.

Debit Wage expense  $ 12,200

Credit Cash Asset        $ 12,200  

Received and paid cash for the supplies in (g).

Debit Cash Asset     $ 1,255

Credit Sales income $ 1,255

7 0
3 years ago
Anne's employer matches 25% of her 401(k) contributions - up to $2000.
muminat

Answer:

<u>The correct answer is D. US$ 1,750.</u>

Explanation:

The data we have is the following:

Anne's employer matches 25% of her contributions up to US$ 2,000

She contributed to her 401(k) plan with US$ 7,000 last year

Therefore, her employer contribution is calculated this way:

Employer contribution = Anne's contribution * 0.25 (up to US$ 2,000)

Employer contribution = 7,000 * 0.25

Employer contribution = US$ 1,750 (below the limit of US$ 2,000

<u>Anne's employer contribution last year to her 401(k) was US$ 1,750</u>

6 0
3 years ago
The set of buyers who share common needs or characteristics that the company decides to serve is called:
Inga [223]
Target market

I hope that helped
8 0
3 years ago
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