Recently, Hale Corporation announced the sale of 2.5 million newly issued shares of its stock at a price of $21 per share. Hale sold the stock to an investment banker, who in turn sold it to individual and institutional investors. This is a primary market transaction.a.Trueb.False

4. Reed Corporation has a deficit in accumulated E & P of $300,000 and has current E & P of $225,000. On 12/31/19, Reed distributes $250,000 to its sole shareholder, Sam, who has a basis in his stock of $55,500. Required: Calculate the following at the Corporation level. a. Dividend distributionb. ROCc. Ending Accumulated E&P at 12/31/19. 5. Tan Corporation has Accumulated E & P of $250,000. Current year E&P of 50,000.It distributes land with a fair market value of $75,000 (adjusted basis of $90,000) to its sole shareholder, Troy: a. What is Troy’s Dividend income?b. How much is added/subtracted in calculating Tan’s E&P

Refer to the “Basis of Securities Sold” discussion following Example 25 in Chapter 11. (Concepts in Federal Taxation, 2021th Edition, Murphy, Higgins, Skalberg) You have always loved ABC Corp. and its wonderful products and so have been an investor in its stock for years. In fact whenever you could you added to your stockholdings in ABC, as follows: 11/2016 – 100 shares at $18 per share (initial purchase) 04/2017 – 100 shares at $22 per share 12/2017 – 100 shares at $24 per share 06/2018 – 100 shares at $25 per share 09/2019 – 100 shares at $29 per share Needing cash for a down payment on a new house, today you sold 250 shares at $36 per share. But, distracted by the wonderful new home that you are about to own, you forgot to instruct your online broker exactly which shares you were sell-ing. What is the amount and character of your gain on today’s sale?

The Bert Corp. and Ernie, Inc., have both announced IPOs. You place an order for 700 shares of each IPO. One of the IPOs is underpriced by $15.75 and the other is overpriced by $6.50. You will receive all of the shares you ordered of the overpriced IPO, but only one-half of the shares you ordered of the underpriced IPO. What profit do you expect? Multiple Choice $15,575.00 $5,512.50 $4,229.25 $962.50 $6,475.00