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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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podryga [215]

Answer:

71,100

Explanation:

The calculation of standard direct labor hours is shown below:-

Labor rate variance = (Actual rate - Standard rate) × Actual hours worked

$35,000 = ($497,000 ÷ 70,000 - Standard rate) × 70,000

(7.1 - Standard rate) = $0.5

= $6.6 per hour

= Labor variance efficiency = (70,000 - Standard hour) × $6.6 per hour

= -$7,260 = (70,000 - Standard hour) × $6.6 per hour

Standard hours = $70,000 + 1,100

= 71,100

8 0
3 years ago
When an investment bank ________ securities, it guarantees a price for a corporation's securities and then sells them to the pub
ankoles [38]

When investment banks underwrite securities, they guarantee the value of the company's securities before selling them to the public.

Investment securities are a class of securities (transferable financial assets such as stocks and bonds) that are purchased for the purpose of being held for investment purposes.

When an investment bank and a company reach an agreement to underwrite (also known as a firm commitment), the investment bank purchases new securities at an agreed price and sells the securities generally at a premium to cover all costs. We will resell. They include costs associated with the sale.

There are four main types of securities. Bonds, equities, derivative securities, and hybrid securities that combine bonds and equities.

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6 0
1 year ago
How can career readiness and competence help my career​
USPshnik [31]

It can give you some insight into your career which can make you more marketable. they can also give you a leg up on the competition and also the ability to negotiate for a higher salary

6 0
3 years ago
What is a good and easy 1 credit class to take on FLVS?
san4es73 [151]

Answer:

Web Design I & II

Explanation:

Worth a whole credit each, the web design courses on FLVS are fun and and interesting, but there's a lot of focus needed to make sure you're doing everything right. Since you'll be creating your very own website using Dreamweaver and Fireworks, you'll have to follow instructions laid out in the modules closely. If you're good at focusing and following extensive directions, then you should be fine with the course. Depending on how computer savvy and focused you are, completion time can range from a week to months.Either way, it's an easy course and can be a huge grade booster since as long as you follow directions, you can easily earn a 95% or higher in the class with barely any mindful effort.

8 0
2 years ago
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Suppose al is trying to decide whether the shower is hot enough to step in, hal is listening to his mp3 player, and sal is looki
Afina-wow [57]

The person who is using his parietal lobe is Al.

The parietal lobe has two main function according to its region. The first function is to receive and process sensory information from all parts of the body while the second is to interpret visual information as well as processing language and numerical inputs.

As described in the question, Al is trying to determine whether the shower is hot enough, which means that he is using his parietal lobe to do so.

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