24 Sam Scurry bought several hundred shares of annable.com at a price of $41.40 about 5 years agothat sold for $64.20 per share today. Sam pays capital gains tax at the rate of 19% and pays taxon dividends at the rate of 27%. Suppose that annable.com elects not to pay a dividend this yearand that Sam sells 19 shares of stock.How much of the total amount of proceeds from the sale will Sam get to keep?

To calculate the amount of proceeds Sam will get to keep after selling 19 shares of stock, we need…

Answered: Sam Scurry bought several hundred…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 31P

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Jayne purchased General Motors stock 6 years ago for $20,000. In the current year, she sells the stock for $35,000. What is Jayne's gain or loss? $15,000 long-term gain $15,000 short-term gain $15,000 ordinary loss $15,000 extraordinary gain No gain or loss is recognized on this transaction.
Devi is the chief executive officer of Nishida Limited. Devi owns 20 percent of the common stock of Nishida. During the current year, Devis salary is 60,000 and he receives a 30,000 bonus. Nishida has taxable income of 200,000 and pays 80,000 in cash dividends. How much gross income does Devi have if a. Nishida is a corporation? b. Nishida is an S corporation?
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Mr. Chan’s employer gave him a share option in March last year to buy 10,000 shares in X Ltd for $5 each when the market price of the shares was $10. Mr. Chan exercised the share option in March this year when the market price of the shares was $15 each. He sold all the shares yesterday for $20 each. What is the share option gain to be included in the assessable income?
Al Rodriguez sells 500 shares of Gold Mine Corp. short at $80 per share. The margin requirement is 50 percent. The stock falls to $62 over a three-month time period, and he closes out his position. How much is his initial margin? What is his percentage gain or loss on his initial margin? If he is in a 35 percent tax bracket for short-term capital gains and a 15 percent bracket for long-term capital gains, what is his tax obligation? If the stock went up to $94 instead of down to $62, what would be his dollar loss? Assuming this is his only transaction for the year, how large a tax deduction could he take against other income?
Liam, a shareholder in Lager, Inc., (a C corporation), would like to sell 800 of his shares of stock in Lager. Since Lager is not traded on an exchange, the only way to sell is the stock is by having Lager redeem the stock. The fair market value of the 800 shares of stock is $200,000. Liam purchased the stock 10 years ago for $95/share. Lager has E&P of $700,000. The corporate stock in Lager is held as follows: Liam 2,000 shares Jennifer (Liam’s sister) 2,000 shares Katherine (Liam’s mother) 2,000 shares Beer Partnerships (Liam has a 30% interest) 4,000 shares 10,000 shares How do you calculate the 800 shares of Liam’s stock to be treated as a qualified stock redemption or will it be treated as a distribution?
Liam, a shareholder in Lager, Inc., (a C corporation), would like to sell 800 of his shares of stock in Lager. Since Lager is not traded on an exchange, the only way to sell is the stock is by having Lager redeem the stock. The fair market value of the 800 shares of stock is $200,000. Liam purchased the stock 10 years ago for $95/share. Lager has E&P of $700,000. The corporate stock in Lager is held as follows: • Liam 2,000 shares • Jennifer (Liam’s sister) 2,000 shares • Katherine (Liam’s mother) 2,000 shares • Beer Partnerships (Liam has a 30% interest) 4,000 shares 10,000 shares if this transaction is treated as a qualified stock redemption, how much tax would Liam owe?
Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000. Last year, Jacob received a nontaxable stock dividend of 2,000 shares in Grebe Corporation. In the current tax year, Jacob sold all of the stock received as a dividend for $18,000. What are the tax consequences of the stock sale.
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