Franks shares of stock

Assignment Help Accounting Basics
Reference no: EM13121446

Hazel, Emily, and Frank, unrelated individuals, own all of the stock in Wren Corporation (Earnings And Profits (E&P) of $900,000) as follows: Hazel, one hundred (100) shares of stock; Emily, one hundred (100) shares of stock and Frank, four hundred (400) shares of stock. Wren Corporation redeems one hundred fifty (150) of Frank's shares of stock (Adjusted Basis of $60,000) for $150,000. As a result of this transaction, which of the following is correct?

(a) Frank has Dividend Income of $90,000.

(b) Frank has a Capital Gain of $90,000.

(c) Frank has Dividend Income of $150,000.

(d) Frank has a Capital Gain of $150,000.

Reference no: EM13121446

Previous Q& A

  Find modelling the rules of a game

Modelling the Rules of a Game. Alex and Mark are playing a game. The goal is to get to 100. The first player picks a whole number from 1 to 10, inclusive, and then the second player picks a whole number from 1 to 10 and adds it to the score so far..

  What are the end products of glycolysis

According to the fluid-mosaic model of cell membranes, which of the following is a true statement about membrane proteins?

  What mass (in kg) of rain falls on the lawn in 3.0 h

If a raindrop weighs 53 mg on average and 5.1 105 raindrops fall on a lawn every minute, what mass (in kg) of rain falls on the lawn in 3.0 h.

  Create confidence intervals for population variance

Assume the sample is taken from a normally distributed population. Construct 98% confidence intervals for (a) the population variance o2 and (b) the population standard deviation.

  Windows or linux

Using what you learned in Lessons 1 and 2 as well as in this lesson, write a well-developed  Argumented  essay on 4  Windows or Linux.  Your essay, which must demonstrate your understanding of the process analysis essay, will be graded using the fo..

  The public needs to know - informative paper

The Public Needs to Know - The scenarios on which to focus your informative paper. Research the topic and include credible sources to support claims. Identify your purpose clearly, incorporate audience needs, establish a desired tone, and orga..

  Illustrate what amount should loch report in its december

The expected and the actual rate of return on plan assets for 20X9 was 10%. There are not other components of Loch's pension expense. Illustrate what amount should Loch report in its December 31, 20X9 balance sheet as prepaid pension cost?

  What is the pressure inside the container

if a 50.0 liter container holds 45 moles of a gas at a temperature of 200 C what is the pressure inside the container

  Find score that separates lower from the rest of the class

Standard deviation of 10.6 points. The lower 5% of the class will not get a passing grade. Find the score that separates the lower 5% from the rest of the class.

  Nilpotents-ideals and nilradicals

Prove that if R is commutative ring and N=(a1,a2, where each ai is a nilpotent element, then N is a nilpotent ideal, i.e N^n=0 for some positive integer n.


Write a Review


Similar Q& A

  Entry to record poulter''s investment in the partnership

Prepare the entry to record Poulter's investment in the partnership, assuming the equipment has a fair value of $19,500.

  Determining bayesian probability

Yearly anutomobile inspections are required for residents of the state of Pennsylvania.Suppose that 18% of all inspected cars in Pennsylvania have problems that need to be corrected.

  Journalize the treasury stock transactions

During 1st year of operations Klump Corporation had the following transactions pertaining to its common stock.

  Risk free real rate of return

You read in the wall street journal that 30 day US treasury bills are currently yielding 8%. your brother in law, a broker, a broker at Kyoto Securities, has given you the following estimates of current interest rate premiums:

  Professionalism in accounting

State how the concept of "professionalism" in the public accounting industry shifted or evolved between Federal Trade Commission's "restraint of trade" decision in the early 1970s and today, several years following passage of the Sarbanes-Oxley Ac..

  Determine activity-based costing and traditional costing

How would you describe activity based costing? Also, can you explain why it might result in more accurate product costing information than the product cost derived under the traditional costing approach?

  Straight line depreciation for financial reporting

The financial reporting carrying value of Boze Music's only depreciable asset exceeded its tax basis by $150,000 at December 31, 2009. This was a result of differences between straight line depreciation for financial reporting purposes and MACRS f..

  Controlling accounts and subsidiary ledgers

What are controlling accounts and subsidiary ledgers? What is the relationship between them?

  Compute depreciation and cash flow

Ohare Company's only asset as of January 1, 2007, was limousine. During 2007, only three transactions occurred:

  Business problem and opportunity confronting

Prepare a paper which examining a business problem and opportunity confronting your organization that you feel could be addressed through the application of business research principles by performing the following:

  Determining tests of controls

What do you do if you are unable to determine internal controls? Which do you think is most important?

  Outputs of accounting information systems

What are the typical outputs of an Accounting Information Systems? Why do system analysts begin by designing the outputs instead of system inputs?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd