Sophie chan owns...accounting question please solve Sophie Chan owns 100,000 shares of PAT Company. PAT isselling for $40 per share, so her investment is worth$4,000,000. Chan reinvests the gross amount of all dividendsreceived to purchase additional shares. Assume that theclientele for PAT shares consists of tax-exempt investors. IfPAT pays a $1.50 dividend, Chan's new share ownership afterreinvesting dividends at the ex-dividend price would beclosest to:A. $103,600.B. $103,750.C. $103,900.

Step 1: Define SharesThe capital of the company is divided into smaller units, which are known as…

Answered: Sophie Chan owns 100,000 shares of PAT…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 47P: Devi is the chief executive officer of Nishida Limited. Devi owns 20 percent of the common stock of...

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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?
SCENARIO: AMO Limited purchases shares of BEMI Limited by investing 1,000,000.00 ZMW. The dividend received on these shares reflects in the profit and loss account of the company. Further, the workers of the company receive an annual bonus and the dividend amount is taken into account in calculating the overall bonus figure.A few years later, AMO Limited transfers the shares of BEMI Limited to CUMI Limited, which is a wholly owned subsidiary of AMOLimited. Post transferring of the shares, the dividends do not reflect in the accounts of AMO Limited. This leads to a reduction in the overall bonus amount figure. Is AMO Limited legally allowed to do so? Which legal theory needs to be mentioned here?
Rodger owns 100 percent of the shares in Trevor Incorporated a C corporation. Assume the following for the current year: Trevor Incorporated’s pretax income = $21,500 Percentage of after-tax earnings retained by Trevor Incorporated = 0% (i.e., all after-tax earnings distributed) Rodger’s dividend tax rate = 15% Given these assumptions, how much cash does Rodger have from the dividend after paying taxes on the distribution? (Round your intermediate calculations and final answer to whole number dollar amount.)
Frank has 200 shares of XYZ, Inc. with a basis of $5,000 and a value of 7,500. He receives a tax-free stock dividend of 50 additional shares, worth $2,500. (a) After the stock dividend, what is his per share basis in the stock? In other words, if he sells 1 share of stock, what is the basis in that share for determining the gain on the sale of the share? (b) Suppose it was a tax-free dividend, but the 50 new shares were of preferred stock – what would his basis be in common stock and in the preferred stock?
On February 15, 2021, Harriett sold 500 shares of QRS Corporation short on the NYSE. Four days later, QRS declared a cash dividend of $.10 per share payable 55 days later to shareholders of record on March 1, 2021. Who will receive the cash dividend on this stock? Group of answer choices Harriett must pay the cash dividend to the investor who acquired the shares from her that she sold short Harriett's broker will be entitled to the cash dividend as part of its profit in selling the stock short Harriett must pay the cash dividend to the investor who loaned the shares to her that she sold short QRS gets to keep the cash dividend until the shares are repurchased by Harriett
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8. A, an individual, owns all 100 shares of X Co. A's basis in these shares is S1 per share ($1000 total). 8a) A transfers 10 shares to Xin exchange for cash of 10. How will this transaction be treated for tax purposes? 8b) Suppose instead that there are 2 shareholders, A and B. Each owns 50 shares of X Co. A transfers all 50 shares to X in exchange for cash of 50. How will this transaction be treated? 8c) Same as (b) except that A and B are husband and wife. Would this change your answer?
Wilson acquires 1500 of the 10000 shares of Star Corp for $900,000. Wilson exerts significant control over Star. Star reports $500,000 of net income in 2022 and paid $5 per share in dividends. What amount of income will Wilson report on this investment?
Parker Company has earnings and profits of $8,000. It distributes capital gain property with a basis of $2,000 and FMV of $9,000 to Gertrude Parker, its sole shareholder. Gertrude has a basis of $ 10,000 in her stock. Which of the following statements is true with respect to this transaction? Multiple Choice Gertrude will report dividend income of $8,000 and a nontaxable distribution of $ 1,000. Gertrude will report dividend income of $8,000. Gertrude will report dividend income of $9,000. Gertrude will report dividend income of $2,000 and a capital gain of $7,000.
Thomas C. Company holds a 15% equity investment in Kayak Zone and treats it as a passive investment. Fred W. Company holds 30% of Kayak Zone's stock and has a significant influence over Kayak. On November 1, 2019, Kayak Zone declares and pays dividends to its stockholders. (Answer as Increase, Decrease or No effect.) 1. How will the dividend affect Thomas C. Company's investment account? 2. How will the dividend affect Fred W. Company's investment account?
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King is a stockholder of Ara Corporation, In 2018, he received as dividend from the latter 150 common shares of Ara Corporațion and another 150 common shares of Mina Company with a market value of P100 and P120 per share, respectively. The dividend income subject to tax of King is Stock dividend Property dividend P33,000 b. 33,000 C. d. 18,000 18,000 15,000

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