Business communication

Family Corporation, a corporation controlled by Buddy's family, redeems all of Buddy's stock. For the redemption to be treate

WINSTONCH [101]

Answer:

C. Buddy cannot be a creditor of the corporation after the redemption.

Explanation:

"A stock redemption that terminates a shareholder’s entire stock ownership in a corporation will qualify for sale or exchange treatment under § 302(b)(3). The attribution rules generally apply in determining whether the shareholder’s stock ownership has been completely terminated. However, the family attribution rules do not apply to a complete termination redemption if the following conditions are met:

The former shareholder has no interest, other than that of a creditor, in the corporation for at least 10 years after the redemption (including an interest as an officer, director, or employee).

The former shareholder files an agreement to notify the IRS of any prohibited interest acquired within the 10-year period and to retain all necessary records pertaining to the redemption during this time period."

Reference: South-Western, Thomson. “Chapter 5.” To Qualify for Sale or Exchange Treatment, a Stock Redemption Generally Must Result in a Substantial Reduction in a Shareholde, 2005,

7 0

3 years ago

Interest earned on both the initial principal and the interest reinvested from prior periods is called _______.

scZoUnD [109]

Answer:

interest earned on both the initial principal and the interest reinvested from prior periods is called compound interest.

________________________________

Compound interest. The interest which is added on to the initial investment, so that this will itself gain interest in subsequent periods.

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1 year ago

Economic ordering quantity with safety stock (LO5) Diagnostic Supplies has expected sales of 84,100 units per year, carrying cos

disa [49]

Answer:c. Assume an additional 80 units of inventory will be required as safety stock. What will the new average inventory be? What will the new total carrying cost be?

Explanation:

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2 years ago

Read 2 more answers

Jim was a crook. He embezzled $450,000 from his employer. When his employer found out about his misdeeds, before even conducting

kati45 [8]

Answer:

b. Jim may have been misrepresented in the story by the newspaper agency and the company might face legal consequences.

Explanation:

Jim has the right to take legal action against the company for releasing the story. The investigation had not been completed and all facts had not been established by the company.

Also the newspaper did not contact Jim to get his own side of the story before publishing, that could have revealed pertinent information about the case.

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2 years ago

Guaranteed circulation in magazines: Multiple Choice is the maximum number of magazines that will be distributed through all cha

Alecsey [184]

Answer:

The correct answer is letter "D": is the number of copies of the magazine that the publisher expects to circulate.

Explanation:

Magazines are mediums of communication characterized for focusing on providing information to a specific customer in the market. In such a scenario we can identify auto magazines, computer and electronics magazines, and cuisine magazines just to mention a few.

The drawback of magazines relies on the delay of the information portrayed since magazines are portrayed periodically -once in a week, or once in a month usually, which implies by the time magazine is printed the information portrayed might have changed.

However, magazines sales managers handle a guaranteed circulation estimate that represents the expected number of copies the publisher aims to circulate.

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2 years ago