JILLIAN OWNS 60% OF THE STOCK IN A PRIVATE CATERING CORPORATION. THERE ARE 1,200 SHARES IN THE ENTIRE CORPORATION. HOW MANY SHARES DOES JILLIAN OWN?
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- Devi is the chief executive officer of Nishida Limited. Devi owns 20 percent of the common stock of Nishida. During the current year, Devis salary is 60,000 and he receives a 30,000 bonus. Nishida has taxable income of 200,000 and pays 80,000 in cash dividends. How much gross income does Devi have if a. Nishida is a corporation? b. Nishida is an S corporation?Marilyn owns 1,000 shares of a company at Php.840 per share. She also owns 10,000 shares of another company at Php.240 per share. In which company is the total value of her share greater?Marilyn owns 1,000 shares of a company at 840 pesos per share. She also owns 10,000 shares of another company at 240 pesos per share. In which company is the total value of her share greater? Explain and defend your answer.
- Frog Corporation is owned equally by Sandy, her husband Tom, her daughter Caitlin, and her grandmother, Martha. Each shareholder owns 200 shares in the company. Under the family attribution rules, how many shares of Frog stock is Sandy deemed to own? Multiple Choice 200 400 600 800Marilyn owns 100% of the stock of Lilac, Inc., with an adjusted basis of $45,000. She receives a cash distribution of $160,000 from Lilac when its earnings and profits are $90,000. A. What is Marilyn’s dividend income? B. What is Marilyn’s recognized gain or loss? c. What is Marilyn’s adjusted basis for her stock after the distribution?Heidi owns 780 shares of Boyd Enterprises, which is priced at $66.14 per share. The company plans a 4-for-3 stock split. How many shares will Heidi own and what will the share price be after the stock split?
- William owns 200 shares of Data General stock. He purchased the stock for $20 a share. He sold her stock for $25 a share. The commissions required to buy and sell his stock totaled $130. Assuming that He received no dividends during the time she owned the stock, what is his total return for this transaction?Lee owns 100% of the shares in Aerodynamic Limited. Lee’s wife, Sandy, owns 100% of the shares in Biodynamic Limited. Are Aerodynamic and Biodynamic associates? If Sandy doesn't have any shares, does Sandy associated with Aerodynamic Limited?If Lee also has a family trust of which he is the settlor. Is Aerodynamic Limited and the Trust associated?Kathleen owns 500 shares of Buda Corporation common stock which was purchased on March 20, 2000, for $48,000. On October 10 of the current year, she receives a distribution of 500 stock rights. Each stock right has a $20 FMV and the FMV of the Buda common stock is $100 per share. With each stock right, she may acquire one share of Buda common stock for $95. a. How much gross income must Kathleen recognize? b. What is the basis of each stock right received? c. If she sells the 500 stock rights for $10,600, what is her gain? d.If she exercises the 500 stock rights on November 10, what is the basis of the 500 shares she receives and when does the holding period for those shares start?
- Debbie, the sole shareholder of Ancient Corporation’s only class of stock, owns 1,000 shares, which she purchased 15 years ago. Debbie’s basis in the stock is $1 million. During the current year, Ancient, which had earnings and profits of $2.5 million, redeemed 900 shares for $2,250,000. What are the amount and the character of Debbie’s gain? A. $2,250,000 dividend. B. $2,250,000 capital gain. C. $1,350,000 dividend. D. $1,350,000 capital gain.Frank has 200 shares of XYZ, Inc. with a basis of $5,000 and a value of 7,500. He receives a tax-free stock dividend of 50 additional shares, worth $2,500. (a) After the stock dividend, what is his per share basis in the stock? In other words, if he sells 1 share of stock, what is the basis in that share for determining the gain on the sale of the share? (b) Suppose it was a tax-free dividend, but the 50 new shares were of preferred stock – what would his basis be in common stock and in the preferred stock?Ann and Paul are shareholders of Android Corporation. Each has a stock basis of $10,000. Android has $21,000 of current E&P and $6,000 of accumulated E&P. Android distributes $12,000 to Anne on July 31 and to Paul $24,000 On December 1. What is Ann’s dividend income (if any)? What is Ann’s capital gain? (if any)? What is Paul’s dividend income (if any)? What is Paul’s capital gain (if any)?