PBQ#2Mac and two of his colleagues (Cheez and Pie) set up a private limited company called Best Sdn. Bhd.with Mac as the Chairman holding 40% of the shares of the company, and his two colleagues asdirectors, each holding 30% of the shares. Best Sdn. Bhd. has 100,000 shares at RM1 each. Mac hasonly paid 60% of his shares whilst Pie has yet to pay 50% of his shares. Meanwhile, Cheez has fullypaid up his shares.You are to discuss the liability of each member (if any) in the event of winding up.

Liability refers to the legal responsibility or obligation of an individual or entity to settle…

Answered: PBQ#2 Mac and two of his colleagues…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter6: Corporations: Redemptions And Liquidations

Section: Chapter Questions

Problem 52P

See similar textbooks

Similar questions

Colter Corporation has two shareholders: Arlen with 70 shares and Marcy with 30 shares. Colter has E&P of $100,000 and capital stock and paid-in-capital accounts totaling $200,000. Colter redeems 10 of Arlen's shares for $31,000. Arlen paid $2,000 per share for the shares 5 years ago. As a result of this transaction _____________________. Question options: a. Arlen will have a long-term capital gain of $11,000. b. Arlen will have dividend income of $31,000. c. Colter's E&P will be reduced by 10% of the outstanding E&P on the distribution.
In 2012, the employees of Radcliff Ltd. agreed to purchase 5% of the share capital of 10 million shares of $2 each. There are 20 employees in the plan and each purchased an equal number of shares. Johnson works at Radcliff Ltd. What would be his ESOP share deduction? A.$50,000 B.$75,000 C.$45,000 D.$25,000
Banner and Strange are partners who have a capital balances of P65,000 and P35,000 and share profits 3:2. Wanda is admitted as a partner and is given a 25% interest in the firm upon investing P40,000 cash. Profits are to be share 5:3:2 by Banner, Strange and Wanda. Subsequently a new partner, Peter, was admitted by investing P25,000 cash for a 20% interest in assets and a 20% share of the firm’s profits. Former partners share the balance of profits in their original ratio. Banner has difficulty getting along with Peter as a result, Banner withdraws from partnership. The partnership pays P73,000 cash for Banner’s interest. How much is the capital balances of Wanda after Banner’s withdrawal? Note: Please provid a solution so that I can understand better. Thank you!
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
Danny and Glover are partners of D&G, a 24-hour retail shop. The partners, allow monthly salaries ofP12,000 and P10,000 to Danny and Glover, respectively, 12% interest on their beginning capital (Danny,P300,000 and Glover, P230,000) and then divide any remaining profit equally. On a net profit of P200,000, therespective shares for Danny and Glover would be
Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company’s objectives. True or False: Larry will receive dividends after preferred stockholders. True False Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company’s stock currently is valued at $42.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $33.60 per share. Larry worries about the value of his investment. Larry’s current investment in the company is __$84,000 ,$33,600, $50,400 ,$92,400. If the company issues new shares and Larry makes no additional purchase, Larry’s investment will be worth __ $201,600 $84,000 $120,960 $80,640.
Brilliant Ltd is a private limited by shares incorporated under Cap. 622. It has firstly issued 5,000 ordinary shares, and subsequently 10,000 8% redeemable preference shares. Both types of shares are issued at $2 each. All monies have been collected for the issued shares.The articles of association of Brilliant states that the preference dividend of the preference shares is to be paid out of yearly profits, and that the holders of the shares only have the right to vote at a meeting of the company when their dividend has not been paid or their rights are being varied.Brilliant has made substantial profits in the initial years and accumulated handsome profits on reserve. In recent years it applied some profits for expansion, but its business deteriorated after expansion. Though it still has positive profits reserve, it has not generated profits for a few years until the last year. In the past three years it did not declare a dividend. The preference shareholders are unhappy about not…
WLS Corporation has three shareholders: Brown (20%), Smith (10%), and Jones (70%). None of these individuals are related. The corporation redeems all of Brown's shares for $100,000. Brown's basis in his shares is $40,000. SELECT ALL OF THE TRUE STATEMENTS FROM THE LIST BELOW!! Brown has $100,000 of dividend income. Brown has a capital gain of $60,000. WLS Corporation will transfer out 20% of the E&P on the distribution. WLS Corporation will transfer out $100,000 of E&P on the distribution.
Sophie chan owns...accounting question please solve
Uramilaben
Please See attached.
AGC Software Pty Ltd (AGC) is a small proprietary company limited by shares that develops, tests and markets its own “anti-malware” software products. Ben has been the sole director at AGC for two years, and prior to that appointment he had served in many other executive roles for a variety of software companies. Ben also holds 40% of the shares in AGC. The remaining shares (60%) are held by 5 other shareholders who are not directors in AGC. Ben and the employees of AGC consider themselves to be highly skilled and knowledgeable in their field. AGC has been increasing its share in the anti-virus software market over the last year which has attracted the attention of the market-leading company, Big Nanny Ltd (Nanny). Nanny makes an offer to Ben that the company will purchase as many shares in AGC as Ben can sell to them, paying him $18.95 per share. This offer is very generous as a recent independent valuation valued AGC shares at only $12.95 each. Ben swiftly makes an offer to buy the…

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SEE MORE TEXTBOOKS