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nasty-shy [4]
3 years ago
5

During the year, a corporation declares a dividend and subsequently distributes to a stockholder $15,000 in cash and a bond with

a basis of $25,000 and a fair market value of $26,000 on the date of distribution. The bond had a fair market value of $26,500 on the date that the corporation declared the dividend. The corporation has current earnings and profits in excess of the total amounts distributed during the year. What identifies the tax consequences of the distribution to the stockholder?
Business
1 answer:
Tresset [83]3 years ago
7 0

Answer:

The stockholder must report a total income of:

$15,000 (cash) + $26,000 (fair market value of the bond) = $41,000

Nonmonetary dividends have to be recognized at the fair market value of the assets that are distributed. Nonmonetary dividends are usually referred to as property dividends. Cash is recognized at its face value.

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"This bond pays interest on January 1st and July 1st. How many days of accrued interest will the customer pay if today is Monday
abruzzese [7]

Answer:

70 days of accrued interest

Explanation:

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5 0
3 years ago
8. Point Co. purchased 90% of Sharpe Corp.'s voting stock on January 1, 20X2 for $5,580,000. Prior to the acquisition, Point hel
aev [14]

Answer:

Option (b) is correct.

Explanation:

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= $620,000 - $340,000

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4 0
3 years ago
In 2016, teller company sold 3,000 units at $600 each. variable expenses were $420 per unit, and fixed expenses were $240,000. w
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