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Ilya [14]
3 years ago
9

Coffee Corporation has 2,000 shares of common stock outstanding. John owns 700 of the shares, John’s grandfather owns 100 shares

, John’s father owns 100 shares, John’s ex-wife owns 700 shares, and Redbird Partnership owns 400 shares. John is a 50% partner in Redbird Partnership. How many shares is John deemed to own in Coffee Corporation under the § 318 attribution rules?
a. 700

b. 1,000

c. 1,100

d. 1,700

e. None of the above
Business
1 answer:
nekit [7.7K]3 years ago
7 0

Answer:

1,000 shares

Explanation:

The 318 attribution rule states that stock owned directly or indirectly by a partnership is considered to be owned by any partner that owns 5% or more in the business.

This is relevant to family owned businesses and is a way to mark out principal owners of a business in order to avoid tax evasion and fraud.

In this scenario John directly owns 700 of the outstanding shares. But according to the 318 attribution rule, since he he is a 50% partner he owns half of the outstanding 2,000 shares. That is 1,000 shares.

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klemol [59]

Answer:

The acquisition cost is $38140

Explanation:

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Therefore, The acquisition cost is $38140.

6 0
3 years ago
A cash dividend payment to shareholders during the year should be reported on the statement of cash flows as:Multiple ChoiceAn i
mafiozo [28]

Answer:

A decrease in cash flows from financing activities

Explanation:

When cash dividend is paid,

It is an outflow of cash as paid, therefore it will decrease the cash flows.

Further dividend is paid to equity, or preference capital raised for business, which is a financing activity.

Therefore, a cash dividend paid to shareholders will result in decrease in cash flow from financing activities.

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Final Answer

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3 0
3 years ago
Read 2 more answers
Sufficient Dwelling Coverage? Colton Gentry of Lancaster, California, has owned his home for ten years. When he purchased it for
Shtirlitz [24]

Answer:

a. $17,978

b. $300,000

Explanation:

Conditions

  • The  cotton country of lancaster, california has owned his home for ten years
  • purchased it for $178,000, cotton bought a $160,000 homeowner's insurance policy
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a.    hence,

the proportion of the house insured = \frac{InsuranceAmount}{PriceOfThe Home} \times 100%

                                                             = \frac{160000}{178000}\times 100

                                                             =   89.89%

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Amount covered by the policy in dollars

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b

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5 0
3 years ago
Marcus is the director of a small company in Boston. He is trying to obtain parts from a manufacturer in Taiwan but that company
kozerog [31]

Answer:

The correct answer is:  bribery.

Explanation:

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6 0
4 years ago
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An article in the Economist on the Irish economy​ argues, Irish​ progress, both economic and​ fiscal, is typically measured usin
anygoal [31]

Answer:

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4 0
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