Sharon Bohnette owns 900 shares of Northern Chime Company. There are four seats on the board of directors up for election and Ms. Bohnette is one of the nominees. Under the traditional method of voting, how many votesmay she cast for herself? Round your answer to the nearest whole number.votesHow many votes may she cast for herself under the cumulative method of voting? Round your answer to the nearest whole number.votes

The stockholder has been given the option to vote once for each share they own using the traditional…

Answered: Sharon Bohnette owns 900 shares of…

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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On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 37,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Sell $18,500 of common stock to Suzie. Jul. 1 Sell $18,500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,920 ($410 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation. Jul. 4 Purchase office supplies of $1,700 on account. Jul. 7 Pay for advertising of $280 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $19,500 cash.…
Suppose you are a CPA hired to represent a client who is currently under examination by the IRS. The client is the president and 95% shareholder of a building supply sales and warehousing business. He also owns 50% of the stock of a construction company. The client's son owns the remaining 50% of the construction company's stock. The client has received a notice of proposed adjustments (NPA) on three significant issues related to the building supply business for the years under examination. The issues identified in the NPA are unreasonable compensation, stock redemptions, and a rental loss. Additional facts regarding the issues are reflected below: Stock redemptions: During the audit period, the construction company redeemed 50% of the outstanding stock owned by the client and 50% of the stock owned by the client's son, leaving each with the same ownership percentage of 50%. The IRS treated the redemption as a distribution under IRC Section 301. Create a tax plan. Use Section 301 of…
What will be the Compensation for officers in the 1120, 2020 form? Please show the calculation as well. EC is owned by four related shareholders from the same family for the entire year: Raphael Giordano (father) and his three children Silvia, Andrea, and Marco. None of EC’s shareholders are non-U.S. persons. There are currently 10,000 shares of EC common stock issued and outstanding (EC has never issued preferred stock). The shareholders are also employees of EC and its only corporate officers. The relevant shareholder and officer information for the current year is provided below. Officer compensation is included in Employee Salaries on the income statement. Given in Income Statement for the period ending December 31, 2020 Salaries & Wages: $743,500. Their personal information is provided below. Raphael Giordano, Shares owned 5,500, 100% of time devoted to the business, compensation of $150,000 Silvia Giordano Costa, Shares owned 1,500, 100% of time devoted to the business,…
Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a that gives the management group control over his shares. 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 $43.00 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 $34.40 per share. Larry worries about the value of his investment. Larry's current investment in the company is If the company issues new shares and Larry makes no additional purchase, Larry's investment will be worth . Larry could be protected if the firm's corporate charter includes a This scenario is an example of provision. If…
Kenny Merinoff and his daughter, Mia, own all outstanding stock of flamingo Corporation. Both Mia and Kenny are officers in the corporation and together with Kenny’s Uncle, Ira, comprise the entire board of directors. Flamingo uses the cash method of accounting and has a calendar year-end. In late 2013, the board of directors adopted the following legally enforceable resolution (agreed to in writing by each of the officers): Salary payments made to an officer of the corporation that shall be disallowed in whole or in part as a deductible expense for Federal Income tax purposes shall be reimbursed by such officer to the corporation to the full extent of the disallowance. It shall be the duty of the board of directors to enforce payment of each such amount. In 2019, Flamingo paid Kenny $800,000 in compensation. Mia received $650,000. On an audit in late 2020, the IRS found compensation of both officers to be excessive. It disallowed deductions for $400,000 of the payment to Kenny and…
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
Kimball, a partner in a one-office firm, inherits 15 shares of Spotless Housekeeping Services stock. The stock has a market value of $25 per share; there is a ready market for them; and there are 300,000 shares outstanding. Spotless is an audit client of the firm, and Kimball does no work or consulting for Spotless engagements. Which of the following is CORRECT regarding Kimball receiving this stock and maintaining the firm's independence with Spotless? As long as Kimball does not work on the engagements for Spotless, nothing need be done. If he works on the engagements for Spotless, then the shares must be promptly sold to preserve the firm's independence. Since the shares are worth only $375 and they were inherited, nothing need be done. If Kimball transfers the shares to a blind trust where he is the beneficiary, independence with Spotless will not be impaired. The shares must be sold within 30 days of their receipt.
Sam owns 50 Class A non-voting shares of ABC Co. Leslie owns 50 Class B voting shares of ABC Co. Who has control of ABC Co? A) Sam B) Both Sam and Leslie C) Leslie D) Neither Sam nor Leslie Odinie has been an employee of ABC Co for the last 5 years. Recently, the CFO has asked all employees to incorporate and advised that their pay will now be received through their corporation instead. Odinie is a Canadian resident individual and is interested in what type of corporation his new company will be. It is established in Canada. A) Specified investment business B) Public corporation C) Personal services business D) Other corporation
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.
Sue received 50 shares of Zoll Industry stock from her Uncle Dave for a graduation present. Dave purchased the stock in 1986 at $25 per share. The stock was worth $60 per share when Sue graduated. What is Sue’s basis in the stock? Group of answer choices $1,250 $2,500 $1,500 $3,000
Alpha Corporation has outstanding four hundred shares of $100 par value common stock, which has been issued and sold at $105 per share for a total of $42,000. Alpha is incorporated in State X, which has adopted the earned surplus test for all distributions. At a time when the assets of the corporation amount to $65,000 and the liabilities to creditors total $10,000, the directors learn that Rachel, who holds one hundred of the four hundred shares of stock, is planning to sell her shares on the open market for $10,500. Believing that this will not be in the best interest of the corporation, the directors enter into an agreement with Rachel to buy the shares for $10,500 from her. About six months later, when the assets of the corporation have decreased to $50,000 and its liabilities, not including its liability to Rachel, have increased to $20,000, the directors use $10,000 to pay a dividend to all of the shareholders. The corporation later becomes insolvent. a. Does Rachel have any…
Last year, Miley decided to terminate the S corporation election of her solely owned corporation on October 17, 2017 (effective immediately), in preparation for taking it public. At the time of the election, the corporation had an accumulated adjustments account balance of $150,000 and $450,000 of accumulated E&P from prior C corporation years, and Miley had a basis in her S corporation stock of $135,000. During 2018, Miley's corporation reported $0 taxable income or loss. Also, during 2018 the corporation made distributions to Miley of $80,000 and $60,000. How are these distributions taxed to Miley assuming the following? (Leave no answer blank. Enter zero if applicable. Enter N/A if not applicable.) b. Both distributions are in cash, and the first was paid on June 15, 2018, and the second on September 30, 2018. Answer is complete but not entirely correct. Amount Taxable Taxable as June 15 $ 09 N/A September 30 $ 5,000 Ordinary income

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