Aaron and michele, equal shareholders in cavalier corporation, receive $25,000 each in distributions on december 31 of the current year. during the current year, cavalier sold an appreciated asset for $60,000 (basis of $15,000). payment for the sale of the asset will be made as follows: 50% next year and 50% in the following year, with interest payable at a rate of 6 percent. before considering the effect of the asset sale, cavalier’s current year e & p is $40,000 and it has no accumulated e & p. how much of aaron’s distribution will be taxed as a dividend? a. $0 b. $20,000 c. $25,000 d. $42,500 e. none of the above.

Conner enterprises issued $120,000 of 10%, 5-year bonds with interest payable semi annually. determine the issue price of the bonds are priced to yield (a) 10%, (b) 8%, and (c) 12%. use financial calculator or excel to calculate answers. round answers to the nearest whole number.

Microsoft's stock price peaked at 6118% of its ipo price more than 13 years after the ipo suppose that $10,000 invested in microsoft at its ipo price had been worth $600,000 (6000% of the ipo price) after exactly 13 years. what interest rate, compounded annually, does this represent? (round your answer to two decimal places.)

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.