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stiv31 [10]
3 years ago
14

Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the company. Comet redeems 50 of Pam's

shares on December 31, 20X3, for $1,000 per share in a transaction that Pam treats as an exchange for tax purposes. Comet has total E&P of $160,000 on December 31, 20X3. What are the tax consequences to Comet because of the stock redemption?
A. No reduction in E&P because of the exchange.
B. A reduction of $50,000 in E&P because of the exchange.
C. A reduction of $40,000 in E&P because of the exchange.
D. A reduction of $80,000 in E&P because of the exchange.
Business
1 answer:
saw5 [17]3 years ago
8 0

Answer:

Correct option is C

Explanation:

Total E&P = $ 160000

Total voting Right Sold = 50/ (100+100) = 25%

Reduction of E& P due to exchange = Total E&P*Total voting Right Sold

Reduction of E& P due to exchange = 160000*25%

Reduction of E& P due to exchange = 40000

Reduction of E& P Lower of Total E&P*Total voting Right Sold or Amount realised

Reduction of E& P Lower of 40000 or (50*1000)

Reduction of E& P Lower of 40000 or 50000

Answer

C. A reduction of $40,000 in E&P because of the exchange.

 

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Answer:

12%

Explanation:

Album Co. paid $12,000 for interest, and that is the stated interest of the bonds.

Stated interest = $12,000 / $200,000 = 6% semiannually, therefore the annual stated interest is 6% x 2 = 12%

The stated rate is applied to the face value of the bonds, regardless of their selling or trading price.

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Answer:a

Explanation:

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Answer:

It takes population size into account when measuring the value of goods and services.

Explanation:

GDP per capita is gross domestic product divided by the total population of a given economy. Thus, unlike the GDP-only measure, which measures the absolute value of domestic production, per capita GDP assesses how much a country's economy is growing per individual, that is, it shows the evolution of production per person.

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3 years ago
Choose the answer that correctly identifies the conflict management styles represented by each version. a. 1- non-confrontationa
patriot [66]

Hi, you've asked an incomplete question. However, the missing question read;

Version 1: George walks away. He never talks to Elaine or Jerry again.

Version 2: George confronts Elaine, saying “I am angry about what you have been saying. I do not want you spreading rumors about me. If you have a problem, please see me about it.”

Version 3: George yells at Elaine to shut u.p and then confronts his boss demanding to know why he’s going to be fired.

Version 4: George demands that Elaine tell him where she heard that. Elaine tells him not to worry about it and tries to crack a joke about how much the boss is late.

Answer:

  • <u>Version 1: non-confrontational</u>
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  • <u>Version 3: confrontational</u>
  • <u>Version 4: confrontational and cooperative</u>

Explanation:

1. In this scenario it is evident that George avoids confrontation with Elaine. In fact, we are told that "[He] walks away..."

2. In this scenario, however, we notice a cooperative deposition between George and Elaine. He made this lear when he said, "...If you have a problem, please see me about it.”

3. Confrontation occurs in this scenario as we are told that "George... then confronts his boss demanding to know why he’s going to be fired. "

4.  By demanding "that Elaine tells him where she heard that" indicates confrontation. While Elaine's cracking a joke about how much the boss is late shows cooperation.

4 0
3 years ago
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Suver Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials
Amiraneli [1.4K]

Answer:

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The computation of the actual price per pound is shown below:

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Actual price per pound = $8.20 per pound

Hence, the actual price per pound is $8.20 per pound

We simply applied the above formula so that the correct value could come

And, the same is to be considered

4 0
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