What are the various corporate nonliquidating distributions and how do they compare and contrast?© BrainMass Inc. brainmass.com October 17, 2018, 12:43 pm ad1c9bdddf
A corporation may distribute money, property, or stock to its shareholders.
Shareholders who receive such distributions might need to recognize it as ordinary income, capital gain, or non taxable income. The distributing corporation may or may not be required to recognize gain or loss when making a distribution, depending on what ...
Solution clearly explains different types of corporate distributions and explains about the factors to be considered for taxation of the distribution to corporates and share holders. 209 words.
2. (a) Your friend Dick Wasson cannot understand how the characteristic of corporation management is both an advantage and a disadvantage. Clarify this problem for Dick.
(b) Identify and explain two other disadvantages of a corporation.
4. What are the basic ownership rights of common stockholders in the absence of restrictive provisions?
9. What factors help determine the market value of stock?
23. The board of directors is considering a stock split or a stock dividend. They understand that total stockholders' equity will remain the same under either action. However, they are not sure of the different effects of the two types of actions on other aspects of stockholders' equity.
Explain the differences to the directors.
32. What is the cost of an investment in stock?
34. (a) When should a long-term investment in common stock be accounted for by the equity method? (b) When is revenue recognized under this method?
44. What is the proper statement presentation of the account Unrealized Loss-Equity?View Full Posting Details