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Novay_Z [31]
2 years ago
11

Explain the requirements for a redemption to pay death taxes. What are the tax consequences of a redemption to pay death taxes f

or the shareholder and the corporation
Business
1 answer:
mart [117]2 years ago
5 0

Answer:

1. The requirements for redemption to pay death taxes are as follows:

<em>- A shareholder must die.</em>

<em>- Value of stock of 1 corporation must exceed 35% value of adjusted gross estate.</em>

<em>- Stock of 2 or more companies exceeds 35%of adjusted gross estate if interest in both companies was greater than 20%.</em>

<em>- Redemption limited to sum of death taxes, funeral expenses and estate legal costs.</em>

<em>- Stock attribution rules do not apply.</em>

<em />

2. The shareholders has no tax consequences as he has died. he heir to the shareholders have little or no tax consequences as the redeemed shares hold a fair market value on the date of death.

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At the beginning of the year, your neighbor bought 250 shares of Nu-Tek Corporation and paid $104.32 per share. The share price
Vesna [10]

Answer:

Return on investment= 87.87 %

Explanation:

Dollar return on investment is the sum  of the capital gains and the dividend received all expressed as a percentage of the cost of the investment.

Total  cost = 250×104.32=26,080

Total capital  gain = (193.65- 104.32)× 250 = 22,332.5

Dividend = $2.34 per share×250 = 585

Dollar return on Investment = (585 +22,332.5) /26080 × 100

               = 87.87 %

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3 years ago
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3 years ago
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7 0
3 years ago
Paying only the minimum balance on your credit card can lead to...
Darya [45]

Answer:

Payment of more interest in future and extension in the term of debt

Explanation:

Credit cards refer to plastic money.Such cards grant the holder the facility to withdraw and make payments greater than their balance of money in the account. Credit cards grant liquidity to the holder but at the same time, the holder is required to pay interest if the money drawn in excess is not paid back to the issuer within a stipulated time.

Minimum balance payment refers to that threshold limit of payment required which keeps the credit card and credit limit operational.

Paying a minimum balance eliminates late fee but interest will have to be paid on the balance remaining outstanding. So gradually, as one keeps paying only the minimum balance, the amount remaining unpaid would rise and thus, the interest to be paid on such outstanding amount shall rise too.

Also, with increasing outstanding dues, the debt term i.e the period by which the holder pays off the entire money due along with interest, will extend. So minimum balance payment may save funds initially, but has adverse long term implications.

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3 years ago
About how long after WWII did employers first start to push back against union encroachment?
Aleksandr-060686 [28]

Answer:

The correct answer is: 10 years.

Explanation:

Almost after ten (10) years after World War II (WWII) ended, the American Federation of Labor (<em>AFL</em>) and the Congress of Industrial Organizations (<em>CIO</em>) joined forces in 1955 under union leader John L. Lewis command. This was mainly caused because of the increase in the number of unions by that year that included law enforcement officials, health care employees, and postal office workers.

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