What are the us tax consequences to all of shareholders

Assignment Help Taxation

Reference no: EM133335590

Assignment:

X Corp. has (i) 100 shares of Class A common stock outstanding and (ii) 50 shares of Class B common outstanding.

(a) What are the U.S. tax consequences to all of the shareholders if X Corp. makes a pro rata distribution of nonconvertible preferred stock to both classes?

(b) Assume, instead, that X Corp. made a pro rata distribution of nonconvertible preferred stock to both classes but Class B common shareholders have the option to take either cash or stock. What are the U.S. tax consequences to all of the shareholders?

(c) Assume, instead, that X Corp. made a pro rata distribution to the Class A shareholders of Class A shares and a cash distribution to Class B shareholders. What are the U.S. tax consequences to all of the shareholders?

Reference no: EM133335590

Questions Cloud

Discuss reasons for which an investigator may be required : Discuss the reasons for which an investigator may be required to investigate a suspicious death. Provide various circumstances which would warrant a case

What should i do for john investment : What should I do for John's investment? How can I do RRSP for John and Jane on their return?

Discuss the business decisions involved in acquiring : Discuss the business decisions involved in acquiring new applications. Consider the different stages of a system development life cycle

Describe the symptoms of these disorders : Describe two to three disorders that commonly occur with substance misuse or abuse. Describe the symptoms of these disorders. Describe special considerations

What are the us tax consequences to all of shareholders : What are the U.S. tax consequences to all of the shareholders if X Corp. makes a pro rata distribution of nonconvertible preferred stock to both classes?

What chosen theory misses in trying to explain behaviors : Address what the chosen theory misses in trying to explain the offender's behaviors. Provide examples of offender aspects that cannot be explained by the theory

Determine an independent contractor : She comes to your accounting office and asked you to advise her if she would be considered an independent contractor. What would you say?

What is ivanias basis in her new corporation stock : How much gain does Ivania recognize on the transfer? What is Ivania's basis in her New Corporation stock?

What do you think ford was so afraid of : what arguments do you think the union's lawyers might have used to challenge Bill 28 if Ford hadn't tried to invoke the notwithstanding clause and/or backed

User Account

All Pages