Answer:
The long term capital gain= $30000-$25000
The long term capital gain= $5000
The basis in stock will be zero after the distribution.
Explanation:
Step 1 of 3
Tax treatment of amount distributed to shareholders:
The amount received as distribution to a shareholder under S Corporation is equal to the cash and fair market value of property distributed. The distribution is considered as tax-free to the limit that it does not exceed shareholder’s basis in the company’s stock. Any amount received in excess of basis will be treated as capital gain.
Step 2 of 3
However, taxation depends whether S Corporation has ever been a C Company or it posses’ accumulated earnings and profits. If it was never a C Corporation or doesn’t holds AEP then distribution equals to basis of share in S Corporation is a tax free gain for shareholder. Gain over and above basis is taxed as capital gains.
Step 3 of 3
In the given problem, C is a shareholder in S Corporation. He receives $30,000 as cash distribution. His basis in stock is $25,000. The distribution up to basis of stock is tax free distribution and above that is charged to capital gains. It is as follows-
Thus, capital gain of is taxable in hands of C. His basis in S Corporation will reduced to zero as entire distribution is over and above basis of his stock.
Answer:
A. Democratic
Explanation:
Leadership is art of guiding & motivating a group of people to achieve a common goal.
Democracy is form of governing based on considerate importance to all people's opinion in group. It is opposite of 'autocratic' governing where leader has immense power & takes decision based on only own opinion.
Joe is considering opinion of all the members of organisation, while taking a decision of purchasing a machine. He paid attention to not only opinion of department heads, but also opinion of other employees. Despite of he & department heads perceiving it to be a good idea, employees considered it to be unnecessary. Thereafter Joe didn't purchase the machine. So, his decision encompassing all people's opinion depicts Democratic Leadership.
<span>A branding strategy in which a firm uses a different brand for each of its products is called individual branding. With the use of this strategy, products from the same company are given a unique identity and name. This is especially useful when companies offer a wide range of products that cater different price markets. </span>
Answer: c) $7,535
Explanation:
The Collection Float refers to the time that it takes for a deposited check to become available to the account owner after the check has been deposited.
The Average amount is calculated thus;
= No. of payments * Clearing days * average value of payment
= 138 * 1.3 * 42
= $7,535
Answer:True
Explanation:
A significant risk device presents a potential for serious risk to the health, safety, or welfare of a subject.
It is classified as Significant risk device since it hopes that the new pacemaker will pose fewer risks to individuals when compared to the current commercially available product.
