The Board of Directors of CYZ Corporation votes to issue two shares of stock for each share held as a stock dividend to shareholders. Just prior to the dividend, Cheryl owns 100 shares of CYZ Corporation stock that she purchased for $10 per share. She receives 200 new shares as a result of the dividend. How much gross income must Cheryl report as a result of the dividend and what is her stock basis after the dividend?
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The Board of Directors of CYZ Corporation votes to issue two shares of stock for each share held as a stock dividend to shareholders. Just prior to the dividend, Cheryl owns 100 shares of CYZ Corporation stock that she purchased for $10 per share. She receives 200 new shares as a result of the dividend. How much gross income must Cheryl report as a result of the dividend and what is her stock basis after the dividend?
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- Sam bought through her broker 200 Apex Mining common stock at $61.50/share. The broker charged her 2% commission. One year later she sold the shares for $71.25. What are the proceeds for this stock market transaction?On January 1, Year 2, Justo purchases 30,000 shares of the 100,000 outstanding shares of stock in Bonita Corp. for $5 per share. During the year, Bonita Corporation has $20,000 of net income and pays $4,000 in dividends. On December 31, Year 2, the value of a share of Bonita Corporation stock is $6 per share. Assuming Justo uses the equity method of accounting for Bonita stock, what is the amount shown for Investment in Bonita on the December 31, Year 2, balance sheet? $156,000 O $180,000 O $154,800 O $150,000Accounting Abco Corporation declared a $5 per share dividend on September 15. The date of record for the dividend was October 1 (the stock began selling ex-dividend on October 2). The dividend was paid on October 15. Jonas is a cash-method taxpayer. Determine if he must include the dividends in gross income under the following circumstances: Jonas bought 100 shares of Abco stock on September 10 for $40 per share. He received a $500 dividend on October 15. Jonas still owns the shares at year-end. Jonas bought 100 shares of Abco stock on August 22 for $40 per share. Jonas sold his Abco shares on October 5 for $50 per share. Jonas received the $500 dividend on October 15 (note that even though he didn't own the stock on October 15, he still received the dividend because he was the shareholder on the record date). Jonas bought 100 shares of Abco stock for $64 per share on August 10. He received the $100 dividend on October 15. Jonas still owns the shares at year- end.
- In September, the board of directors of chaparral steel approved a 2 for 1 stock split. After the split, how many shares of chaparral steel stock will an investor have if he or she owned 230 shares before the split?2. Naomi owns 1,000 shares of Nordstrom Corp. common stock which she purchased for $42400 and later receives a nontaxable preferred stock dividend of 200 shares of Nordstrom preferred stock when the FMV of the preferred was $60 per share and the FMV of the common was $48 per share. What is the basis of the preferred shares after the dividend? The answer is $32560 please explain how to calculate properlyCorporation has a single class of common stock outstanding. Tabitha owns 1,000 shares, which she purchased five years ago for $120,000. Rose declares a stock dividend payable in 8% preferred stock having a $50 par value. Each shareholder receives one share of preferred stock for ten shares of common stock. On the distribution date—January 2 of the current year—the common stock was worth $95 per share, and the preferred stock was worth $50 per share. On April 1 of the current year, Tabitha sells half of her preferred stock for $9,200. a. How much income must Tabitha recognize when she receives the stock dividend? b. How much gain or loss must Tabitha recognize when she sells the preferred stock? (Ignore the implications of Sec. 306.) c. What is Tabitha's basis in her remaining common and preferred shares after the sale? When does her holding period for the preferred shares begin?
- A decedent invested in the stocks of ABC Corporation by Purchasing stocks from an investor who sold the shares at P 125 per share. At the date of the decedent's death, the stocks were selling P 134 per share. What is the value to include in gross estate?5. JFINEX Corporation declared dividends on January 15. The payment date is February 5, the date of record is on February 1, and the ex-dividend date is on January 27. Maria bought 100 shares of the company's stock on January 16. Maria sells her shares to Alex on January 27 and Alex sells to Toni on February 1. Who is entitled to the dividend?" A) Maria B) Alex C) Toni D) The person who sold the share to Maria E) NoneBonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,400, and Clyde owns the remaining 40 shares with a basis of $13,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. (Leave no answer blank. Enter zero if applicable.) Required: a. Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 25 of Bonnie's shares for $6,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below. Req A Req B Req C Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at…
- Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,400, and Clyde owns the remaining 40 shares with a basis of $13,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. (Leave no answer blank. Enter zero if applicable.) Required: a. Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 25 of Bonnie's shares for $6,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below. Req A Req B Req C Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at…Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,400, and Clyde owns the remaining 40 shares with a basis of $13,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. (Leave no answer blank. Enter zero if applicable.) Required: a. Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 25 of Bonnie's shares for $6,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below. Req A Req B Req C Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at…Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,400, and Clyde owns the remaining 40 shares with a basis of $13,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. (Leave no answer blank. Enter zero if applicable.) Required: a. Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 25 of Bonnie's shares for $6,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below. Req A Req B Req C Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end…