57. A, B & C (unrelated individuals) each own 25 shares of Corporation Y's common stock. Corporation Y declares a dividend payable to all shareholders in the amount of $10 in cash or 5 additional shares of common stock. All shareholders elect to receive additional shares of stock. The above distribution will be tax free to the shareholders: a. True h False nkos the respective stock distributions

57. A, B & C (unrelated individuals) each own 25 shares of Corporation Y's common stock. Corporation Y declares a dividend payable to all shareholders in the amount of $10 in cash or 5 additional shares of common stock. All shareholders elect to receive additional shares of stock. The above distribution will be tax free to the shareholders: a. True h False nkos the respective stock distributions

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6. Brian owns 25% of Raisman Corporation's single class of stock (Brian owns 500 of 2,000 outstanding shares). Brian's basis in the stock is $12,000. Raisman's E&P is $132,000. If Raisman redeems 200 of Brian's stock for $28,000, Brian must report dividend income (if any) of (show all work and explain your answer): A) $0. B) $11,200. C) $16,800. D) $28,000.
A, B and C are partners with the following P/L ratio and capital balances: A (60%) P100,000; B (30%) P60,000; and C (10%) P20,000. |
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48. Help me selecting the right answer. Thank you
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Issued shares are the Number of shares that have been distributed to shareholders Total number of shares that can be issued by the corporation at any time Number of shares that are owned by shareholders at the balance sheet date Number of shares the corporation has repurchased Non-cash assets invested into a partnership are recorded at * Zero Their original cost O Their carrying value Their fair market value
#16On December 1, 2019, Ceniza corporation received a donation of 3,000 shares of its P50 parvalue ordinary shares from a shareholder. On that date, the share’s market value was 350per share. The stock was originally issued for P250 per share. By what amount would thisdonation cause total shareholder’s equity to decrease? 0 pls provide the correct solution for the given answer
III. Problems 1 RFBT Exercise Explain or state briefly the rule or reason for your answers. 1. A contract was entered into in the name of the corporation with the unanimous approval of all the stockholders. Is the contract binding on the corpora- tion? 2. X, a director in a corporation, is recorded in the book of the corporation as owner of one (1) share of stock. X admits that the true owner is Y, its President. Is X disqualified to be a director? 3. A vacancy occurs in the board of directors, fur- ther reducing the number from 11 to 6 members. Who is empowered to free the vacancy, the stockholders or the incumbent directors? 4. X was elected director in a corporation. The other directors who supported his election, assured hir a monthly compensation of P50,000. In fact, they approved a resolution granting him the compensation. Is X entitled to the compensation?
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52) Brett, a 50% owner of Atlas Corporation's common stock, receives a distribution of a new class of Atas preferred stock having a $40,000 FMV. Bret's basis in the Atlas common stock is $30,000 Its FMV . $80,000 on the distribution date. One year later the corporation redeems the preferred stock for $75,000 At the time the stock was issued, the corporation's current and accumulated E&P was $80,000. At the end of the year of redemption the current and accumulated E&P is $25,000. No other distributions out of E&P were made in the year of redemption What are the tax consequences of the transaction?