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dsp73
3 years ago
14

Select the answer that best describes what happens when shareholders receive a series of distributions, not part of an installme

nt obligation, covering 2 or more consecutive tax years in redemption of all of the stock of a corporation pursuant to a plan intended to result in the complete liquidation of the corporation.
a. The shareholders will be allowed to recover their respective basis in the stock before recognizing any gains.
b. The shareholders will treat the distributions as dividends to the extent of the corporation’s earnings and profits.
c. The shareholders will recognize a pro rata portion of the gain in each of the years that distributions are received.
d. No losses from the transactions will be deductible.
Business
1 answer:
prohojiy [21]3 years ago
5 0
Answer is B the shareholders
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In their simplest form, bonds are pure ________. a) debt b) equity c) hybrid security d) current assets
melomori [17]

In their simplest form, bonds are pure a) debt.

<h3>What are bonds?</h3>
  • A bond may be a debt security, almost like an IOU.
  • Borrowers issue bonds to boost money from investors willing to lend them money for a certain amount of time.
  • When you buy a bond, you're lending to the issuer, which can be a government, municipality, or corporation.
  • In return, the issuer promises to pay you a specified rate of interest during the lifetime of the bond and to repay the principal, also referred to as face value or par value of the bond, when it "matures," or comes due after a group period of time.
<h3>What sorts of bonds are there?</h3>

The main types of bonds are:

  • Investment-grade
  • Corporate bonds
  • Municipal bonds
  • High-yield bonds

To learn more about bonds: brainly.com/question/17405470

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5 0
1 year ago
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May JuneManuf
Juli2301 [7.4K]

Answer:

Total cash expense= $181,675

Explanation:

Giving the following information:

Manufacturing cost:

April= $155,800

May= $190,300

Insurance is not paid in May.

Property tax is paid in November.

Depreciation is not a cash expense.

<u>Total cash payment May:</u>

Manufacturing cost May= 190,300*0.75= 142,725

Manufacturing cost April= 155,800*0.25= 38,950

Total cash expense= $181,675

4 0
3 years ago
On July 31, Cynthia contributed land with a basis to her of $22,000 and a FMV of $30,000 to the Sterling Partnership in exchange
butalik [34]

Answer:

D

Explanation:

See attached file

8 0
3 years ago
For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Peacock is c
Elden [556K]

<u>Solution and Explanation:</u>

For every one of the accompanying situations, start by expecting that all interest factors are set to their unique qualities and Peacock is charging $300 per room every night.  

1) If the normal family unit pays increments by 20%, from $50,000 to $60,000 every year, the amount of rooms requested at the Peacock ascends from 200 rooms every night to 250 rooms every night. Accordingly, the pay flexibility of interest is certain, implying that lodgings at the Peacock are ordinary products.  

<u>Explanation:</u> Income elasticity of demand = 25% divide by 20% = 1.3

At the point when raise in salary prompts an expansion in the amount requested (or a fall in pay prompts a fall in the amount requested), the great is known as an ordinary decent.  

2) In the event that the cost of an aircraft ticket from JFK to LAS was to increment by 10%, from $200 to $220 roundtrip, while all other interest factors stay at their underlying qualities, the amount of rooms requested at the Peacock tumbles from 200 rooms for every night to 150 rooms for each night. Since the cross-value versatility of interest is negative, lodgings at the Peacock and aircraft trips among JFK and LAS are supplements.

<u>Explanation:</u> Cross elasticity of demand = -25% divide by 10% = -2.5

Two merchandise ordered supplements when a raise the cost of one great abatement the amount requested of the other or when a fall in the cost of one great expands the amount requested of the other.  

3) Peacock is discussing diminishing the cost of its rooms to $275 every night. Under the underlying interest conditions, you can see this would make its all-out income increment. Diminishing the cost will consistently have this impact on income when Peacock is working on the flexible part of its interest bend.  

<u>Explanation:</u> Total revenue = $300 per room per night multiply with 200 rooms = $60,000 per night

By bringing down its cost to $275, Triple Sevens can occupy 225 rooms. In such situation, all-out income is $275 per room every night multiply 225 rooms = $61,875 every night  

At the point when the request is versatile, the rate change in cost is littler than the rate change in an amount as the purchasers are exceptionally delicate to changes in cost.

8 0
3 years ago
the ending balance of the retained earnings account appears in group of answer choices only the statement of stockholders’ equit
evablogger [386]

The ending balance of the retained earnings account appears both in the statement of stockholders’ equity and the balance sheet.

<h3>Where does retained earnings appear?</h3>

Retained earnings is the profit left after dividends have been paid. It is the profit that is not paid out to shareholders as dividends.

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a point in time. The retained earnings appears in the equity section of the balance sheet.

The statement of stockholders’ equity records the owners equity and changes to the owners equity during a financial year.

The income statement records a company's income and expenses in a financial year. It is used for determining if a firm is operating at a profit or a loss.

To learn more about income statement, please check: brainly.com/question/9060570

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5 0
2 years ago
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