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Flura [38]
2 years ago
14

Marcie and her husband, Franklin, each own 50 shares of Chestnut, Inc. Sally, Marcie's old high school friend, owns the remainin

g 50 shares (150 total shares outstanding). Chestnut redeems 40 of Marcie's shares for $38,000 (her adjusted basis was $5,000). What is the tax treatment of the basis of the shares redeemed
Business
1 answer:
RSB [31]2 years ago
8 0

Answer:

$38,000 Dividend

Explanation:

Based on the information given the tax treatment of the redemption to Marcie will be $38,000 dividend reason been that her husband shares was been attributed to her, and Since she owns 60 shares her remaining 10 shares including that of her husband 50 shares of Chestnut's will be 110 shares calculated as 150 shares - 40 shares outstanding.

Therefore when we look at this 60 shares/110 shares is greater than 50% which means that Marcie fails the 50% test which makes the redemption to be treated as a dividend.

Hence, the tax treatment of the basis of the shares redeemed will be $38,000 Dividend.

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The selling process begins with prospecting and qualifying. Welcome Home wants its sales force to call on those customers who ar
-BARSIC- [3]

Answer:

Geographic factor is the most important one as people in that vicinity might be interested in buying a home and hence it becomes very important for the company to ensure that first those probable customers should be trapped who are within a location zone.

Rest of the two options are wrong as religion would not affect this choice and also employer is not permanent.

8 0
2 years ago
If the price of Product E decreasing by 2% causes its quantity demanded to increase by 14% and the quantity demanded for Product
Reika [66]

Answer:

B) complements

Explanation:

The cross elasticity shows a relationship between the percentage change in quantity demanded with the percentage change in the price.

In case of the substitute goods, the relation between the price and the quantity demanded is positive that means if the price of goods increased than the quantity demanded is also increased

And, In case of the complementary goods, the relation between the price and the quantity demanded is  negative that means if the price of goods increased than the quantity demanded is decreased

According to the given situation, the most appropriate option is B.

5 0
2 years ago
_____ forces affect the way politics shape laws and the way laws shape the opportunities for and threats to an organization. For
oee [108]

Hey there

the answer is political-legal

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4 0
2 years ago
Read 2 more answers
TEW COMPANY Balance Sheet As of December 31 ASSETS Cash $ 20,000 Accounts receivable 80,000 Inventory 50,000 Net plant and equip
Mariana [72]

ANSWER: 57.5%

Debt to assets ratio:

= Total Liabilities / Total Assets

Given:

Cash $20,000

Accounts Receivable $80,000

Inventory $50,000

Net Plant and Equipment $250,000

Total Assets: $400,000

Accounts Payable $40,000

Accrued Expenses $60,000

Long Term Debt $130,000

Total Liabilities: $230,000

Computation:

= $230,000 / $400,000

= 57.5%

The interpretation of the figures shown is that 57.5% of the total assets are financed by the creditors of company instead of investors being funded by borrowing compared as how much was funded by the investors.

Generally, 40℅ ratio or lower is considered as a good debt ratio. Above than 60℅ ratio is said as poor ratio, because of the risk that the company will not be able to generate cash flows to finance and pay its debts.

Therefore, TEW Company has a normal and efficient ratio of 57.5% and is able to pay its debts.

3 0
2 years ago
Kate is a busy student. She likes to run to stay healthy and fit. She doesn't shop all the brands because she knows what shoe is
Yanka [14]
The correct answer is D
4 0
2 years ago
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