Raymundo purchased 200 common, shares of Advance Corporation at P55 per share. At the end of the year, he received a 10% stock dividend in common, shares, The day after receipt of the dividend, he sold 40 shares at P 60 per share. The gain on sale is
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![4. Raymundo purchased 200 common, shares of Advance Corporation at
P55 per share. At the end of the year, he received a 10% stock dividend in
common shares, The day after receipt of the dividend, he sold 40 shares
at P 60 per share. The gain on sale is
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- Mr. Ragot owns 20,000 shares of Anderson Corporation stock. The company will be issuing a stock dividend. Before the dividend Mr. Ragot owned 10% of the outstanding stock. It had a market value of $200,000, or $10 per share. After he receives the 10% stock dividend, what is the value of his shares?Please do not give image formatMando, manager of XXX Domestic Corporation, received a stock option from the corporation entitling him to buy 5,000 shares of XXX at P10.00 per share. After some time, Mando exercised his option when the shares were selling at P15.00 per share. The shares, at the time of exercise, had a book value of p12.00 per share. After 3 months, Mando sold the shares for P18.00 per share. Compute the compensation income of Mando. * P50,000 O P40,000 P25,000 O P15,000
- Show your work Cerulean Corporation has two equal shareholders, Marco and Avery. Marco acquired his Cerulean stock three years ago by transferring property worth $700,000, basis of $300,000, for 70 shares of the stock. Avery acquired 70 shares in Cerulean Corporation two years ago by transferring property worth $660,000, basis of $110,000. Cerulean Corporation’s accumulated E & P as of January 1 of the current year is $350,000. On March 1 of the current year, the corporation distributed to Marco property worth $120,000, basis to Cerulean of $50,000. It distributed cash of $220,000 to Avery. On July 1 of the current year, Avery sold her stock to Harpreet for $820,000. On December 1 of the current year, Cerulean distributed cash of $90,000 each to Harpreet and Marco. What are the tax issues?on January 1, T purchased both a bond and stock of CorporationX. The bond was purchased for $10,000, had a face value of $10,000 and paid 10% interest on December 31 of each year. The stock was purchased for $10,000 and paid a dividend of $1,000 on December 31. T sold both the stock and bond on July 1 of the same year. The bond sold for $10,300 and the stock for $11,000. What income, gain or loss, including character type (eg capital gain, interest, dividend, ordinary will T recognize as a result of the sales?Vikarmbhai
- Cerulean Corporation has two equal shareholders, Marco and Avery. Marco acquired his Cerulean stock three years ago by transferring property worth $700,000 (basis of $300,000) for 70 shares of the stock. Avery acquired 70 shares in Cerulean Corporation two years ago by transferring property worth $660,000 (basis of $110,000). Cerulean Corporation's accumulated E & P as of January 1 (current year) is $350,000. On March 1 of the current year, the corporation distributed to Marco property that is worth $120,000, with a basis to Cerulean of $50,000. It distributed cash of $220,000 to Avery. On July 1 of the current year, Avery sold her stock to Harpreet for $820,000. On December 1 of the current year, Cerulean distributed cash of $90,000 each to Harpreet and Marco. Regarding this tax situation, classify each of the following as "Yes" a relevant tax issue or "No" not a tax issue. What basis do Marco and Avery have in their stock in Cerulean Corporation after their initial transfers for…Hope Corporation has a single class of common stock outstanding. Joe owns 400 shares, which he purchased for $40 per share two years ago. On April 10 of the current year, Hope distributes to its common shareholders one right to purchase for $55 one common share for each common share owned. At the time of the distribution, each common share is worth $85, and each right is worth $40. On September 10, Joe sells 200 rights for $5,000 and exercises the remaining 200 rights. On November 10, he sells for $90 each 167 of the shares acquired through exercise of the rights. Read the requirements. Amount of gain or loss 10880 Character of gain or loss long-term capital gain Requirement c. What are the amount and character of gain or loss Joe recognizes upon exercising the rights? (Enter a 0 for a zero amount. If the amount is zero, select "n/a" in the character column.) Joe Amount of gain or Character of gain or loss loss Requirement d. What are the amount and character of gain or loss Joe…Shaylash bought 250 shares of stock at $31.38 per share. Several months later he sold the stock at $45.65 per share. His broker charges 4% commission for round lots and 5% for odd lots. Calculate the gain or loss on the transaction. (Show loss in parentheses)
- Brent, Matt, Chris, Brad, and Anwer are five unrelated shareholders, and they each owns 20 of the 100 outstanding shares of Aggie Corporation. On June 30 of this year, Aggie distributed $100,000 in cash to the shareholders. On September 30 of this year, Aggie redeemed all Anwer's shares for $80,000. Aggie had $45,000 of accumulated E&P at the beginning of the year and reported $120,000 of current E&P at year-end. What is Aggie's accumulated E&P at the beginning of next year? Consult Revenue Rule 74-338. (Hint: determine the tax status of the redemption and then calculate the effect of the June distribution on current E&P.) Note: Negative amount should be indicated with a minus sign. > Answer is not complete. Current E&P $ 120,000 Less dividends paid (100,000) Undistributed Current E&P $ 20,000 Prorated Undistributed Current E&P at 9/30 S 15,000 Add Accumulated E&P at the beginning of year 45,000 Total Accumulated E&P at 9/30 $ 60,000 Reduce Accumulated E&P by Add current E&P in 4th…Cerulean Corporation has two equal shareholders, Eloise and Olivia. Eloise acquired her Cerulean stock three years ago by transferring property worth $700,000, basis of $300,000, for 70 shares of the stock. Olivia acquired 70 shares in Cerulean Corporation two years ago by transferring property worth $660,000, basis of $110,000. Cerulean Corporation’s accumulated E & P as of January 1 of the current year is $350,000. On March 1 of the current year, the corporation distributed to Eloise property worth $120,000, basis to Cerulean of $50,000. Itdistributed cash of $220,000 to Olivia. On July 1 of the current year, Olivia sold her stock to Magnus for $820,000. On December 1 of the current year, Cerulean distributed cash of $90,000 each to Magnus and Eloise. What are the tax issues?Al owns 800 shares of The Good Life Co. The company recently issued a statement that it will pay a dividend per share of $0.55 this year and a $0.60 per share liquidating dividend next year. Al wants equal dividend income in both years. Al earns 9 percent on his investments. Ignoring taxes, what will Al's total homemade dividend policy and what will be his dividend income in both years? Support your answer with detailed computations.
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