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maw [93]
4 years ago
12

Family​ Corporation, a corporation controlled by​ Buddy's family, redeems all of​ Buddy's stock. For the redemption to be treate

d as a​ sale, which one of the following conditions must be​ met? A. Buddy cannot acquire an​ interest, even by​ inheritance, for 10 years unless the bequest was made prior to the redemption. B. Buddy must have purchased the redeemed stock from a person whose stock ownership would be attributed to Buddy. C. Buddy cannot be a creditor of the corporation after the redemption. D. Buddy cannot be an officer of the corporation after the redemption.
Business
1 answer:
WINSTONCH [101]4 years ago
7 0

Answer:

C. Buddy cannot be a creditor of the corporation after the redemption.

Explanation:

"A stock redemption that terminates a shareholder’s entire stock ownership in a corporation will qualify for sale or exchange treatment under § 302(b)(3). The attribution rules generally apply in determining whether the shareholder’s stock ownership has been completely terminated. However, the family attribution rules do not apply to a complete termination redemption if the following conditions are met:

   The former shareholder has no interest, other than that of a creditor, in the corporation for at least 10 years after the redemption (including an interest as an officer, director, or employee).

   The former shareholder files an agreement to notify the IRS of any prohibited interest acquired within the 10-year period and to retain all necessary records pertaining to the redemption during this time period."

Reference: South-Western, Thomson. “Chapter 5.” To Qualify for Sale or Exchange Treatment, a Stock Redemption Generally Must Result in a Substantial Reduction in a Shareholde, 2005,

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There are 10 workers in Thailand and each can produce either 4 computers or 60 tons of rice. There are 20 workers in the United
Ilya [14]

Answer:

The answer is in the image attached

Explanation:

We will ultiply the output per worker by the amount of workers to get the output for each country

<u>United States:</u>

20 workers x 10 output each  = 200 computers

20 workers x 80 output each = 1,600 tons of rice

<u>Thailand:</u>

10 x 4 = 40 computer

10 x 60 = 600 tons of rice

8 0
3 years ago
In 2016, General Dynamics Corporation began selling a new line of products that carries a two-year warranty against defects. Bas
Shtirlitz [24]

Answer:

C) 38,000

Explanation:

The estimated warranty liability for 2017:

= [2016 sales x (first + second year warranty costs)] + [2017 sales x (first + second year warranty costs)] - (warranty expenses for 2016 and 2017)

= [$600,000 x (2% + 5%)] + [$800,000 x (2% + 5%)] - ($20,000 + $40,000)

=  $42,000 + $56,000 - $60,000 = $38,000

4 0
4 years ago
Politically speaking, which party is more apt to engage in regulatory practices over the business?
Alex Ar [27]

In the United States polity, the political party that is likely to wield more regulatory practices over the business is the Democratic party.

<h3>Why should the Democratic Party be more rigorous with regulatory practices over the business?</h3>

The Republican Party is noted for its support of right-wing beliefs such as libertarianism, social conservatism, and economic libertarianism, among others. As a result, Republicans typically advocate for conservative values, little government intervention, and strong support for the private sector.

In contrast, the Democratic Party prefers a mixed economy and typically supports a progressive tax structure, increased minimum wages, Social Security, universal health care, public education, and subsidized housing. It also encourages infrastructure development and sustainable energy investments in order to spur economic growth and employment creation.

Learn more about Democratic Party:
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6 0
1 year ago
At the break-even point of 1000 units, variable costs are $60000, and fixed costs are $35000. How much is the selling price per
Mice21 [21]

Answer:

the selling price per unit is $95

Explanation:

The computation of the selling price per unit is shown below:

Selling price per unit is

= Total cost ÷ break even points

where,

Total cost is

= Variable cost +  fixed cost

= $60,000 + $35,000

= $95,000

And, the break even point is 1,000 units

So, the selling price per unit is

= $95,000 ÷ 1,000 units

= $95

Therefore, the selling price per unit is $95

6 0
4 years ago
What are the pros and cons of using the web as a distribution channel? Crafted Jewels is a jewelry manufacturer that sells its d
prohojiy [21]

Answer:

answer is given below

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Online display advertising

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  • A phrase, it seems. Even if no one appears to have clicked on your display ad, they are still gaining influence from your company.

E-mail

  • Age is a historical and far-reaching method to reach a significant niche audience as a rule by purchasing e-mail contact record.

Pros

  • E-mail enables you to have full management of content. You can place as much or as little content as you want with the added bonus of adding video or imagery.

Social media site visitors

  • A social media site visitor may be concerned about obtaining the following through a site visitor, attention or social media web site.

If you are ready to make time, social media is rampant in delivering good lead generation, client re-treatment and company progress on your company's advertising content.

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