Raul owns 1,000 shares of stock in Mountain Corporation, worth $50 per share. The 2,000 shares...
Raul owns 1,000 shares of stock in Mountain Corporation, worth $50 per share. The 2,000 shares were purchased in 2004 for $10 per share. In 2013, the corporation issues a 10% stock dividend to all common shareholders with an option of receiving either the stock worth $10,000 or $12,000 cash. Raul selects the stock. Raul's gross income from the above is:
raul can elect to recognize income of 12,000 or reduce he basis in the stock by 10,000
0
12,000
10,000
none of the above
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Raul owns 1,000 shares of stock in Mountain Corporation, worth
$50 per share. The 2,000 shares...
Trusty Corporation has a single class of common stock outstanding. Jim owns 200 shares, which he...
Trusty Corporation has a single class of common stock outstanding. Jim owns 200 shares, which he purchased for $50 per share two years ago. On April 10 of the current year, Trusty distributes to its common shareholders one right to purchase for $60 one common share for each common share owned. At the time of the distribution, each common share is worth $75, and each right is worth $15. On September 10, Jim sells 100 rights for $2.000 and exercises...
Trusty Corporation has a single class of common stock outstanding. Jim owns 200 shares, which he...
Trusty Corporation has a single class of common stock outstanding. Jim owns 200 shares, which he purchased for $50 per share two years ago. On April 10 of the current year, Trusty distributes to its common shareholders one right to purchase for $60 one common share for each common share owned. At the time of the distribution, each common share is worth $75, and each right is worth $15. On September 10, Jim sells 100 rights for $2,000 and exercises...
Jan. 1 Acquired 150 shares of Block Corporation common stock for $20 per share, 200 shares...
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a. In 2017, Kevin purchased 5,000 shares of Purple Corporation stock at $6 per share. In...
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New Corp. issues 2,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, credits are made to 1.Common Stock $20,000 and Paid-in Capital in Excess of Par $12,000. 2. Common Stock $20,000 and Retained Earnings $12,000. 3. Common Stock $32,000. 4. Common Stock $20,000 and Paid-in Capital in Excess of Stated Value $12,000.
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1. Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. When the transaction is recorded, credits are made to a.Common Stock, $7,000, and Paid-In Capital in Excess of Stated Value, $15,000 b.Common Stock, $15,000, and Paid-In Capital in Excess of Par—Common Stock, $7,000 c.Common Stock, $22,000 2. Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:...
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Trusty Corporation has a single class of common stock outstanding. Jim owns 200 shares, which he purchased for $50 per share two years ago. On April 10 of the current year, Trusty distributes to its common shareholders one right to purchase for $60 one common share for each common share owned. At the time of the distribution, each common share is worth $75, and each right is worth $15. On September 10, Jim sells 100 rights for $2.000 and exercises...
Trusty Corporation has a single class of common stock outstanding. Jim owns 200 shares, which he purchased for $50 per share two years ago. On April 10 of the current year, Trusty distributes to its common shareholders one right to purchase for $60 one common share for each common share owned. At the time of the distribution, each common share is worth $75, and each right is worth $15. On September 10, Jim sells 100 rights for $2,000 and exercises...
a. In 2017, Kevin purchased 5,000 shares of Purple Corporation stock at $6 per share. In 2019, he receives a 5% preferred stock dividend. At the time of the stock dividend, the common stock of Purple Corporation has a fair market value of $9 and the preferred stock has a fair market value of $12 per share. Upon receipt of the preferred stock dividend: What is Kevin's per share basis in the Purple Corporation stock? How much taxable income does...
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