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:
Wait in line before trading
Explanation:
1920s stock brokerages. When a normal person wanted to buy or sell shares, they had to run to the next broker and sometimes wait in line before making their trade.
Answer:
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Explanation:
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Distance ran by Chris Gilbert, D = 96 yards
Speed, S = 4.9 s / 40 yards
Time ran by Chris Gilbert, T = D x S
T = (96 yards) x (4.9 s / 40 yards)
T = 11.76 s, total time ran by Chris Gilbert
According to <em>Robin Leidner</em>, fast-food restaurants rationalize the process of providing food to customers by developing standardized scripts for employees to use when dealing with customers.
There are many advantages associated with the fact that fast-food chains develop standardized scripts for customer service, as this way, they ensure compliance and quality of processes.
Standardization in fast-food restaurants therefore ensures faster service, mechanization of processes and higher quality in food production, since production and service standards must be followed in any unit of a fast-food chain.
Learn more about standardization here:
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