Calculate the stock rate of distribution, Corporate Finance

A owns all of the stock of X.  The stock's basis is $100.  X has a total of current and accumulated earnings and profits of $50.  X distributes $200 cash to A "with respect to his stock" (i.e., as a state law "dividend").  How is the $200 taxed and what is A's stock basis after the distribution?

 

 

Posted Date: 3/20/2013 6:07:39 AM | Location : United States







Related Discussions:- Calculate the stock rate of distribution, Assignment Help, Ask Question on Calculate the stock rate of distribution, Get Answer, Expert's Help, Calculate the stock rate of distribution Discussions

Write discussion on Calculate the stock rate of distribution
Your posts are moderated
Related Questions
Explain what caused "the long boom" in the U.S. and world economy from the early 1980s to its peak in 2006.  Make sure to mention, with a few key facts in each case, the role playe

what will be impact on the operating leverage of a firm if it proceeds for additional borrowings

1. Use the bond price, yield-to-maturity, and quantity available you collected for each bond in Component 2 for this project to estimate an average current bond price and an averag

Mad Cat Inc. is debating between two alternative earth moving machines to use for the next 8 years.  The first supplier, Double Candle, offers the necessary machinery (CCA rate = 3

Q. Establishing the scale and cost of phoenix activity? In 1996, the Australian Securities Commission (ASC, now ASIC) quantified the annual loss to Australian businesses due to

The cost of capital for a firm can differ from the cost of capital for each of its businesses. When a firm has multiple businesses, it is important to use the cost of capital appro

you buy a car for ths 10000000 to be repaid in 3 years, with annua interest of 12%. preapare a loan amortization table

As the company''s sales and earnings increased, so did the demand for capital. The firm''s needs included inventory as well as additional space to house the inventory, computer fac

From a Corporate Finance and Governance perspective, the IMP is about answering three fundamental questions: 1. How much value does the organisation create/destroy today? 2.

Method is the ?rst of two methods proposed by Mantrala and Rao (2001) and has been reviewed in Section 2.We use a simpli?ed version, with ?xed prices and for a single period. Furth