Sharon Bohnette owns 900 shares of Northern Chime Company. There are six seats on the board of directors up for election and Ms. Bohnette is one of the nominees. Under the traditional method of voting, how many votes may she cast for herself? How many votes may she cast for herself under the cumulative method of voting?

Sharon Bohnette owns 900 shares of Northern Chime Company. There are six seats on the board of directors up for election and Ms. Bohnette is one of the nominees. Under the traditional method of voting, how many votes may she cast for herself? How many votes may she cast for herself under the cumulative method of voting?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 13DQ

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Sharon Bohnette owns 900 shares of Northern Chime Company. There are four seats on the board of directors up for election and Ms. Bohnette is one of the nominees. Under the traditional method of voting, how many votes may she cast for herself? Round your answer to the nearest whole number. votes How many votes may she cast for herself under the cumulative method of voting? Round your answer to the nearest whole number. votes
Sharon Bohnette owns 1,300 shares of Northern Chime Company. There are six seats on the board of directors up for election and Ms. Bohnette is one of the nominees. Under the traditional method of voting, how many votes may she cast for herself? Round your answer to the nearest whole number.
Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The Dried Fruit Corp. stock is owned one-third by Raisin and two-thirds by Prune. All shareholders are US resident citizen individuals. At the beginning of the current year, Raisin's basis in his shares was $36,000 and Prune's basis in her shares was $12,000. During the current year, Dried Fruit Corp. earned $216,000 of net income from operations. Raisin's share was $72,000; Prune's share was $144,000. On July 1st, Dried Fruit Corp. distributed $96,000 to Raisin and $192,000 to Prune. How much gain does Prune recognize as a result of this transaction? Ⓒ $24,000 O $12,000 O $0 O $36,000
Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The Dried Fruit Corp. stock is owned one-third by Raisin and two-thirds by Prune. All shareholders are US resident citizen individuals. At the beginning of the current year, Raisin's basis in his shares was $99,000 and Prune's basis in her shares was $33,000. During the current year, Dried Fruit Corp. earned $594,000 of net income from operations. Raisin's share was $198,000; Prune's share was $396,000. On July 1st, Dried Fruit Corp. distributed $264,000 to Raisin and $528,000 to Prune. How much gain does Raisin recognize as a result of this transaction? O $66,000 $99,000 O $0 $33,000
Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The Dried Fruit Corp. stock is owned one-third by Raisin and two-thirds by Prune. All shareholders are US resident citizen individuals. At the beginning of the current year, Raisin's basis in his shares was $48,000 and Prune's basis in her shares was $16,000. During the current year, Dried Fruit Corp. earned $288,000 of net income from operations. Raisin's share was $96,000; Prune's share was $192,000. On December 31st, Dried Fruit Corp. distributed Grapeacre (real property) having a fair market value of $96,000, and a basis of $64,000, to Raisin and Plumacre (real property) having a fair market value of $192,000 and a basis of $176,000, to Prune. How much gain does Raisin recognize as a result of this transaction? $48,000 $16,000 $32,000 $0
Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The Dried Fruit Corp. stock is owned one-third by Raisin and two-thirds by Prune. All shareholders are US resident citizen individuals. At the beginning of the current year, Raisin's basis in his shares was $54,000 and Prune's basis in her shares was $18,000. During the current year, Dried Fruit Corp. earned $324,000 of net income from operations. Raisin's share was $108,000; Prune's share was $216,000. On December 31st, Dried Fruit Corp. distributed Grapeacre (real property) having a fair market value of $108,000, and a basis of $72,000, to Raisin and Plumacre (real property) having a fair market value of $216,000 and a basis of $198,000, to Prune. How much gain does Prune recognize as a result of this transaction? $0 $36,000 $54,000 $18,000
Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The Dried Fruit Corp. stock is owned one-third by Raisin and two-thirds by Prune. All shareholders are US resident citizen individuals. At the beginning of the current year, Raisin's basis in his shares was $12,000 and Prune's basis in her shares was $4,000. During the current year, Dried Fruit Corp. earned $72,000 of net income from operations. Raisin's share was $24,000; Prune's share was $48,000. On July 1st, Dried Fruit Corp. distributed $32,000 to Raisin and $64,000 to Prune. How much gain does Raisin recognize as a result of this transaction? O $12,000 O $4.000 Ⓒ $8,000 O $0
Four unrelated shareholders own Benton Corporation's 400 shares of outstanding stock. As indicated below, Benton redeems a total of 100 shares for $500 per share from three of its shareholders. Each shareholder has a $230 per share basis in his or her stock. Benton's current and accumulated earnings and profits (E&P) at the end of the tax year is $150,000. View the shareholder data. Read the requirements. to Ethel, Fran, and Georgia? Ethel Fran Georgia Amount of income, gain, or loss Ethel Fran Georgia Character of income, gain, or loss Amount of income, gain, or loss 50,000 0 50,000 capital gain capital gain capital gain Requirement b. How would your answer to Part a change if Ethel were Georgia's mother? Character of income, gain, or loss dividend income return of capital Basis of remaining shares dividend income Basis of remaining shares Shareholder Data Shareholder Ethel Fran Georgia Henry Total Shares Held Before the Redemption Print 200 100 50 50 400 Done Shares Redeemed 40 30 30…
Stevie recently received 1,080 shares of restricted stock from her employer, Nicks Corporation, when the share price was $9 per share. Stevie's restricted shares vested three years later when the market price was $12. Stevie held the shares for a little more than a year and sold them when the market price was $15. Assuming Stevie made a section 83(b) election, what is the amount of Stevie's ordinary income with respect to the restricted stock?
In the following case, identify all the violations of the rules of conduct of the Code of Professional Ethics, indicate the rule and explain why it was violated. Carmen and Carlos formed a corporation called CPA al servicio. 50% of all issued shares are divided between the two owner shareholders. Carmen in CPA and member of the AICPA Carlos is an appraiser. They announce themselves as members of the AICPA. They were hired to do an audit, the payment of which will be based on the findings of the CPA. Carmen commented with another CPA colleague on important aspects of the case to be audited. During the audit Carmen found deviations from the Generally Accepted Accounting Principles. Carmen gave an opinion in the report of her "unqualified without qualification."102 Integrity and objectivity } 201 General standards } 202 Compliance with standards } 203 Accounting Principles } 301 Confidential customer information } 302 Contingency expenses } 501 Acts of discredit } 502 Promotion or…
2. On March 5, 2022, the two 50% shareholders of a calendar year corporation decide to elect S status. Shareholder Mila purchased her stock from a previous shareholder (a nonresident alien) on January 18, 2022. Identify any potential problems for Mila and the corporation.
Suppose you are a CPA hired to represent a client who is currently under examination by the IRS. The client is the president and 95% shareholder of a building supply sales and warehousing business. He also owns 50% of the stock of a construction company. The client's son owns the remaining 50% of the construction company's stock. The client has received a notice of proposed adjustments (NPA) on three significant issues related to the building supply business for the years under examination. The issues identified in the NPA are unreasonable compensation, stock redemptions, and a rental loss. Additional facts regarding the issues are reflected below: Stock redemptions: During the audit period, the construction company redeemed 50% of the outstanding stock owned by the client and 50% of the stock owned by the client's son, leaving each with the same ownership percentage of 50%. The IRS treated the redemption as a distribution under IRC Section 301. Establish when stock redemption is…