darius12318
15.10.2019 •
Business
Perch corporation has made paint and paint brushes for the past ten years. perch corporation is owned equally by arnold, an individual, and acorn corporation. perch corporation has $100,000 of accumulated and current e& p. both arnold and acorn corporation have a basis in their stock of $10,000. perch corporation discontinues the paint brush operation and distributes assets worth $10,000 each to arnold and acorn corporation in redemption of 20% of their stock. due to the distribution, arnold and acorn corporation must report a. arnold acorn corporation $8,000 capital gain $8,000 capital gain b. arnold acorn corporation $10,000 dividend $10,000 dividend c. arnold acorn corporation $10,000 dividend $8,000 capital gain d. arnold acorn corporation $8,000 capital gain $10,000 dividend
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Ответ:
D. Arnold = $8,000 capital gain, Acorn Corporation = $10,000 dividend
Explanation:
Since Acron Corporation is a firm and not an individual, thus it is not entitled to any partial liquidating distribution.
He shall receive everything as dividend and nothing in exchange of his 20% partial share.
Thus, amount received by it shall be $10,000 dividend upto the value of accumulated earnings.
Further in case of Arnold being the individual his share = $10,000 - $2,000 is capital gain.
Acquisition base = $10,000
20% = $2,000
Amount received = $10,000
Thus, it shall be a capital gain = $10,000 - $2,000 = $8,000
Ответ:
it means u mad bro?
Explanation: