Income taxes on disposal of the stock

Reference no: EM13139031

On June 1, 2011, Blue Co. distributed to its common stockholders 280,000 outstanding common shares of its investment in Red, Inc., an unrelated party. The carrying amount on Blue's books of Red's $1 par common stock was $1.90 per shares. Immediately after the declaration, the market price of Red's stock was $2.70 per share. In its income statement for the year ended June 30, 2011, what amount should Blue report as gain before income taxes on disposal of the stock?

Reference no: EM13139031

Questions Cloud

Calculate the test statistic and determine the p-value : Calculate the test statistic, determine the p-value, and at α = 0.05 significance level, test the hypotheses and draw your conclusion.

Understanding second coming of christ : How many resurrections occur in Rev 20 and who participates in each? When do they occur, and what happens to the people who are resurrected?

Calculate molarity of solution : Calculate molarity of solution obtained by dissolving 0.212g of Na2CO3 in 250cm3 of solution?

Irac method of analysis for the "newberger vs pokrass, : submit an IRAC method of anaylsis for the "Newberger vs Pokrass," case

Income taxes on disposal of the stock : In its income statement for the year ended June 30, 2011, what amount should Blue report as gain before income taxes on disposal of the stock?

What would murphy corporation total estimated cost : Murphy Corporation has the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Murphy Corporation has decided to use a method of measuring cost functions called the high-low method in this situa..

Authority of biblical canon : How does the New Testament Canon possess and exercise normative authority for Christianity? What is it about the history and exegesis of the canon that raises the question about the canon's normative authority?

Compute time needed for five simulated maintenance checks : Using random numbers of 0.1567, 0.9823, 0.3419, 0.5572 and 0.7758, compute the time required for each of five simulated maintenance checks of the airplane's landing gear.

Find the ph of 0.018 m aqueous aspirin : Acetylsalicylic acid (aspirin), HC9H7O4, is the most widely used pain reliever and fever reducer in the world. Find the pH of 0.018 M aqueous aspirin at body temperature (Ka at 37°C = 3.6 10-4).

User Account

All Pages