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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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Contour Autos competes against the global leaders in the automobile industry by developing and selling acceptable quality vehicl
alisha [4.7K]

Answer:

c. cost-leadership strategy

Explanation:

Contour Autos tend to decrease the price of the product and that the quality served of the product is acceptable and not degraded. In this manner as against the normal industry the company supplies same quality goods at lower prices.

This decreases the cost for consumers and therefore, it is termed as Cost-Leadership strategy.

The Company tends to lead in the market through lower cost of goods supplied with the same quality.

5 0
3 years ago
________ are combating competitive pressures by providing better value with private-label merchandise; adding new value-added se
Evgesh-ka [11]

Answer: Conventional supermarket

Explanation:

Conventional supermarket is a departmentalized food store that has a wide range of food and related products and the sale of general merchandise is limited.

Conventional supermarket started about 75 years ago. The aim of establishing a conventional supermarket is that large-scale operations would lead to higher volume of sales, and low prices.

7 0
3 years ago
Yasmine plans to attend a four-year public university. She expects she will need to contribute $9,000 annually to her education.
mojhsa [17]
It is D. There are 12 months in a year and she needs to save atleast 9,000. 
600x12=7,200
350x24=8,400
225x36=8,100
200x48=9,600
7 0
3 years ago
Read 2 more answers
The stockholders' equity section of the balance sheet for Potawatomi Corporation appeared as follows before its recent stock div
adell [148]

Answer:

Common stock = $110,000

Additional paid-in capital  = $130,000

Retained earnings = $170,000

Explanation:

Computation of the given data are as follows:

Common stock after issuing stock dividend = $100,000 + ( 10,000 ×10% × $10)

= $100,000 + 10,000 = $110,000

Additional paid-in capital after issuing stock dividend = 120,000 +  ( 10,000 ×10% × $10)

= 120,000 + 10,000 = $130,000

Retained earnings after issuing stock dividend = 150,000 +  ( 10,000 ×10% × $20)

= 150,000 + 20,000 = $170,000

7 0
3 years ago
Halestorm Corporation’s common stock has a beta of 1.20. Assume the risk-free rate is 4.5 percent and the expected return on the
Lemur [1.5K]

Answer:

Ke = Rf  + β(Rm – Rf)

Ke = 4.5 + 1.20(12-4.5)

Ke = 4.5 + 9

Ke = 13.5%

Explanation:

Cost of equity is equal to risk-free rate plus market risk premium. Market risk premium is beta multiplied by risk premium. Risk premium is market return minus risk-free rate.

8 0
3 years ago
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