User Account

All Pages

What are the tax consequences to robert

Assignment Help Accounting Basics
Reference no: EM132047138

Question - Robert and Lori (Robert's sister) own all of the stock in Swan Corporation (E & P of $1 million). Each owns 500 shares and has a basis of $85,000 in the shares. Robert wants to sell his stock for $600,000, the fair market value, but he will continue to be employed as an officer of Swan Corporation after the sale. Lori would like to purchase Robert's shares and, thus, become the sole shareholder in Swan, but Lori is short of funds. What are the tax consequences to Robert, Lori, and Swan Corporation under the following circumstances?

a. Swan Corporation distributes cash of $600,000 to Lori, and she uses the cash to purchase Robert's shares.

b. Swan Corporation redeems all of Robert's shares for $600,000.

Reference no: EM132047138

Questions Cloud

How dominant groups can play a role in marginalizing : Post an explanation of how dominant groups can play a role in marginalizing other groups based on racial and ethnic characteristics.
Do american indians resist assimilation : When discussing American Indians' heritage and assimilation you must discuss historical notions from this group within this country.
How does the case of puerto rico and puerto ricans affect : How does the case of Puerto Rico and Puerto Ricans affect the notion of race and ethnicity as a social constructs?
Write an analysis on asian-americans : On many indicators of success, such as income and education, Asian-Americans, will a distinct minority, surpass Whites in America. Why is this?
What are the tax consequences to robert : What are the tax consequences to Robert, Lori, and Swan Corporation under the following circumstances
Explain the difference between race and ethnicity : What is the difference between race and ethnicity? Have Americans of different races and ethnicities assimilated, if so, in what ways.
Compute the equivalent units of production : Using the FIFO costing method, compute the equivalent units of production for direct materials and conversion costs for the company's first year
What dollar amount was transferred : Chemical, Inc., which uses a process costing system, makes a chemical used as a preservative. What dollar amount was transferred from Department B
What were the results or findings of the research : What were the results or findings of the research? What do you think would be a good solution to the social problem?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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