Ms. Jones owns all of the shares of Jones Co. She has had the company valued and 50% of the shares are worth $100,000. She is going to sell to her husband 50% of her shares for $100,000 cash. She intends to report the gain on her tax return and have her husband pay tax on any dividends paid by the company. Does this work? Comment.

Ms. Jones owns all of the shares of Jones Co. She has had the company valued and 50% of the shares are worth $100,000. She is going to sell to her husband 50% of her shares for $100,000 cash. She intends to report the gain on her tax return and have her husband pay tax on any dividends paid by the company. Does this work? Comment.

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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