shareholder transfers $100,000 to a newly created corporation. At the end of the first year of successful operations, the corporation distributes $30,000 payment to the shareholder. If the transfer by the shareholder is all equity (ie. Stock), the affect of the $30,000 payment (Dividend Payment) to the shareholder results in a deduction to the corporation of: $ -0-. $ 30,000. $100,000. $ 70,000.
shareholder transfers $100,000 to a newly created corporation. At the end of the first year of successful operations, the corporation distributes $30,000 payment to the shareholder. If the transfer by the shareholder is all equity (ie. Stock), the affect of the $30,000 payment (Dividend Payment) to the shareholder results in a deduction to the corporation of: $ -0-. $ 30,000. $100,000. $ 70,000.
Chapter6: Corporations: Redemptions And Liquidations
Section: Chapter Questions
Problem 30CE
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Question
A shareholder transfers $100,000 to a newly created corporation. At the end of the first year of successful operations, the corporation distributes $30,000 payment to the shareholder. If the transfer by the shareholder is all equity (ie. Stock), the affect of the $30,000 payment (Dividend Payment) to the shareholder results in a deduction to the corporation of:
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$ -0-. |
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$ 30,000. |
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$100,000. |
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$ 70,000.
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