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maw [93]
3 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]3 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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A marketing
Fynjy0 [20]

Answer:

True.

Explanation:

Given that Marketing is a term that describes the activities of a business firm in advertising its business commodities to predetermined consumers. This is done by letting the potential consumers fully aware of the business products and services being offered for sale. For example media commercials like television advertisements, radio adverts, newspapers adverts, roadside Billboards, etc.

Hence, it is TRUE that marketing is used by businesses to help promote products and services and reach out to potential customers.

8 0
3 years ago
The cross-price elasticity of demand measures the percentage change in quantity of a good demanded when the price of a different
Harrizon [31]

Answer:

hello your question is incomplete attached below is the complete question

answer :

For Negative cross-price Elasticity :

DVD players and DVD and Shampoo and conditioner

Positive cross-price Elasticity :

Beer and Wine  and  Soda pop and iced tea

Zero cross-price elasticity :

Coffees and shoes

Explanation:

<u>For Negative cross-price Elasticity : </u>

DVD players and DVD and Shampoo and conditioner ; this is because the percentage change in the price of any of the good will affect the demand for both goods negatively or positively

<u>For positive cross-price Elasticity :</u>

Beer and Wine  and  Soda pop and iced tea : The percentage change in the price of any of the good will affect the demand of the other good positively ( increase in demand of the other good )

<u>For Zero cross-price Elasticity </u>:

Coffees and shoes; The percentage change in the price of any of the good will not affect the other because both goods are not related

6 0
3 years ago
Given the following owner’s income and expense estimates for an apartment property, formulate a reconstructed operat-ing stateme
scoundrel [369]

Answer:

$363,000

Explanation:

Calculation for the property’s indicate market value.

First step

Operating Statement

PGI: $66,000

(10 units x $550 x 12 month )

Less: Vacancy Loss(3,300)

(5%*66,000)

EGI:62,700

Less: Operating Expenses

Power$2,200

Heat1,700

Janitor4,600

Water3,700

Maintenance4,800

Management3,000

Reserve for CAPX2,800

Total Operating Expenses$22,800

Net Operating Income$39,900

(62,700-22,800)

Second step is to find the property’s indicate market value.

Using this formula

Market Value=NOI/ Ro

Let plug in the formula

Market Value=$39,900/11.0%

Market Value=$363,000

Therefore the property’s indicate market value is

$363,000

6 0
3 years ago
Fein Company provided the following information relating to cash payments:
BlackZzzverrR [31]

Answer:

Fein Company

Schedule of Cash Payments

For the Month of August 202x

Salaries expenses:

From July salaries                  $3,230

<u>From August salaries            $31,860</u>

Total salaries                        $35,090

Direct materials:

From July purchases             $61,600

<u>From August purchases        $14,600</u>

Total direct materials            $76,200

Overhead expenses:            $64,850

Debt payments:

Principal                                 $15,000

<u>Accrued interests                      $450</u>

Total debt payment              $15,450

Total cash payments           $191,590

6 0
3 years ago
The two most likely benefits realized from utilizing enterprise systems are improvements in ________. availability of informatio
Mazyrski [523]

Answer: availability of information and increased interaction throughout the organization

Explanation: An enterprise systems is described as an integrated suite of business applications for virtually every  department, process, and industry, that allows companies and organizations to integrate information across  operations on a company-wide basis by the use of one large database and as a result, there is an upward increase in the availability of information which leads to increased interaction across departments, processes, and industries throughout the organization.

6 0
3 years ago
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