John and his following relatives own a total of 80% of S Corporation: Wife, Son, Grandmother, Great Uncle, Grandson, Aunt and Cousin. The other 20% of the S Corporation is owned by 5 unrelated individuals. How many S Corporation shareholders are there for purposes of determining the maximum 100 shareholder rule?

John and his following relatives own a total of 80% of S Corporation: Wife, Son, Grandmother, Great Uncle, Grandson, Aunt and Cousin. The other 20% of the S Corporation is owned by 5 unrelated individuals. How many S Corporation shareholders are there for purposes of determining the maximum 100 shareholder rule?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Lucas currently owns 350 shares of Tidewater Bay, Inc. Each share is worth $42. If the company declares a 5-for-3 split, Marcus will own _______ shares at a value of ________ per share after the split. 1. 210; $25.20 2. 210; $70.00 3. 583.33; $25.20 4. 583.33; $42 5. 583.33; $70.00
Frog Corporation is owned equally by Sandy, her husband Tom, her daughter Caitlin, and her grandmother, Martha. Each shareholder owns 200 shares in the company. Under the family attribution rules, how many shares of Frog stock is Sandy deemed to own? Multiple Choice 200 400 600 800
The White Summer Ski Lodge, Inc. has one class of common stock owned as follows: 20% by Winston Green 18% by Winston's nephew, Vincent 17% by Winston's old high school friend, Bud ( Bud and Winston both invested in the Landview Limited Real Estate partnership). 25% by a trust with Winston's wife Sylvia as trustee. The equal beneficiaries are Sylvia's mother, Kimberly, and Winston's brother, Kirk. 20% by Kirk's wife, Hester. Winston owns, directly or indirectly, the following percentage of the stock in the corporation: a. 82% b. 100% c. 49.5% d. 69.5%
When Jon Batiste incorporated, his corporation issued 150 shares from treasury for $12 per share to him. In 2017, the Jon sold half of his shares to another individual for $14 per share. In 2018, an employee purchased 20 shares from treasury for $16 per share. All shares are of the same class. Which one of the following amounts represents the per-share paid-up capital? $13.33 $11 $13.67 $15
Max owns 60% of Big Bang Ltd. and owns 60% of Beta Inc. Hence, they are associated. Max owns 20% of Alpha Ltd. and 10% Tiny Bang Ltd., which is not an associated company. Each of the four corporations has $400,000 of active business income earned in Canada. What is the maximum small business deduction combined (i.e., total combined SBD deduction of all four companies) that the four corporations can claim on corporate income? Group of answer choices $1,300,000 $1,200,000 $1,600,000 $1,500,000
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.
Mary Phelps owns 2,000 of the 100,000 shares of Mega Corporation. By purchasing a minimum of the additional 50,000 shares authorized by the corporation, Mary is exercising her_ shares of
A VIE has three equity holders, Equity Holder 1 owns 20% of the C/S. Equity holder 2 owns 30% of the C/S and equity holder 3 owns 50% of the C/S. Each of the equity holders has 2 votes on a 6-person board. The board makes all decisions affecting the VIE’s policies and practices. Determine which party, if any, is the primary beneficiary and explain briefly why.
Please See attached.
Mr. Aldrin owns 15,000 shares of INC , Inc. which has a 40,000 shares outstanding and 60,000 shares of authorized capital stock. INC issues additional shares of 10,000 capital stocks giving the shareholders the pre-emptive right to subscribe . a) Determine the proportionate interest of Mr. Aldrin. b) If Aldrin exercises his rights, what will be his proportionate interest ?