### How should clyde treat payment on his 2010 tax return

Assignment Help Accounting Basics
##### Reference no: EM13121131

This is a tax research problem - Clyde had work for many years as the chief executive of Red Industries, and had also been a major shareholder. Clyde and the company had a falling out, and Clyde was terminated. Clyde and Red executed a document under which Clyde stock on Red would be redeemed and Clyde would agree not to compete against Red in its geographic service area. After negotiations, Clyde agree to surrender his Red stock in exchange for \$600,000.Clyde basis in his shares was \$143,000, and he had held the shares for 17 years. The agreement made no explicit allocation of any of the \$600,000to Clyde's agreement not to compete against Red. How should Clyde treat the \$600,000 payment on his 2010 tax return? Is the answer long-term capital gain of \$457,000

#### Questions Cloud

 Calculate the amount of work done : The addition of H2 to double bonds is an important reaction used in the preparation of margarine from vegetable oils. If 50.0 mL of H2 and 50.0 mL of ethylene (C2H4)are allowed to react at 1.5 atm, the product ethane (C2H6) has a volume of 50.0 mL.. How many boxes does gentry expect to purchase : Gentry Company produces speaker systems for trucks. Estimated sales (in units) in January are 20,000; in February 25,000; and in March 22,000. Each unit is priced at \$45. Gentry wants to have 25% of the following month's sales in ending inventory. General overview of the rfp : General overview of the RFP•The business requirements for the project, including the specific items (products and services) on which the suppliers are bidding and any information on costs.•Due date of the proposal (proposal deadline)•Instructions on .. Question regarding prime polynomials : Give an example of a polynomial of a degree 2 that satisfies the following two conditions: (1) the coefficient of x^2 is 1 and (2) the polynomial cannot be factored. Explain why the polynomial cannot be factored. How should clyde treat payment on his 2010 tax return : This is a tax research problem - Clyde had work for many years as the chief executive of Red Industries, and had also been a major shareholder. Clyde and the company had a falling out, and Clyde was terminated. Compute the gross-margin percentage for each product : the solution of this exercise 16-27 Alternative methods of joint-cost allocation, product-mix decisions. The Southern Oil Company buys crude vegetable oil. Calculate the theoretcial yeild : .914g sample of stannous flouride gives a 1,078g precipitate of stannous phosphate. calculate the theoretcial yeild? Solve a statistical probability : Conditional Probability Example I'm trying to set up an excel spreadsheet to solve a statistical probability.Patients 23% (smokers) -18% have a chance of contracting a serious illness Find relatively more positive ions : During the neuron's resting state, large amounts of positive ______ ions are found in the extracellular fluid, whereas relatively more positive ______ ions are found inside the cell.

### Write a Review

#### Accountability in reporting memo

Write a short Memo to a nonfinancial audience explaining how increasing scrutiny and demand for accountability by the public has influenced reporting for not-for-profit and governmental entities.

#### Diversification of investments

he bonds will be insured up to \$17,000, so Jose doesn't want to invest more than that amount in bonds which will earn 4 1/2%. What will be the maximum amount of interest that Jose could learn?

#### Character of income-partnership interest

How much income must Dave report for the tax year and what is the character of the income? What is Dave's basis in his partnership interest at the end of the tax year?

#### Asset turnover profit margin-target rate of return

Innovative Furnishing Solutions (IFS) a division of Steelman Corporation: Asset turnover Profit margin, Target rate of return on investments for RI, Cost of capital and other operational data, to compute the segment margin and the average assets f..

#### Interest computations and journal entries

Dekon Company's December 31 year-end unadjusted trial balance shows an \$8,000 balance is Notes Receivable. Prepare journal entries for December 31 and for the note's maturity date assuming it is honored.

#### Fraudulent financial reporting-specific accounting principle

Describe the areas in which the Adelphia communications engaged in fraudulent financial reporting and the circumstances that led to this. Evaluate the specific accounting principles (GAAP).

#### Depreciation on the school musical instruments

The Piedmont School of Music has hired you as a consultant to help in analyzing the behavior of the school's costs.

#### Sufficient understanding and reliable evidence

Auditors should understand the five components of internal control that are sufficient to assess the risk of material misstatement of the financial statements, whether due to error or fraud, and to design the nature, timing, and extent of further ..

#### Computing kanbans in production process

A manufacturer of thermostats uses a kanban system to control the flow of materials. The packaging center processes 10 thermostats an hour and receives completed thermostats every 30 minutes. Containers hold 5 thermostats each.

#### Irc section 351

How many distinct steps or requirements are contained in the language of IRC Section 351 (a) for non-recognition treatment, and what are they?

#### Average costs and variable costs

What problems are associated with using the average cost per unit as a performance measure? What problems are associated with using the variable cost per unit as a performance measure?

#### Accounting depreciation

Calculate Alexandra's maximum depreciation deduction for 2011 for the computer, assuming she doesn't make the election to expense or take bonus depreciation.