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torisob [31]
3 years ago
9

Zero Corp. is an investment company authorized to issue only common stock. During the last half of the current year, Edward owne

d 450 of the 1,000 outstanding shares of stock in Zero. Zero would not be subject to the personal holding company (PHC) penalty tax if the remaining 550 shares of common stock were owned by:_______.
A) An estate where Edwards is the beneficiary.
B) Edwards's brother-in-law.
C) A partnership where Edwards is not a partner.
D) Edwards's cousin.
Business
2 answers:
Serga [27]3 years ago
7 0

Answer:

C)

Explanation:

Based on the scenario being described it can be said that they would not be subject to this if the common stock were owned by a partnership where Edwards is not a partner. Most likely if the stocks were divided between Fifty-five shareholders who are related neither to each other nor to Edward, in equal lots of 10 shares each.

Ierofanga [76]3 years ago
6 0

Answer:

C

Explanation:

Zero Corp. is an investment company authorized to issue only common stock. During the last half of the current year, Edward owned 450 of the 1,000 outstanding shares of stock in Zero. Zero would not be subject to the personal holding company (PHC) penalty tax if the remaining 550 shares of common stock were owned by a partnership where Edwards is not a partner and also Fifty-five shareholders who are not related ne to each other nor to Edward, that share equal lots of 10 shares each. This being the case.

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