Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the company. Comet redeems 50 of Pam's shares on December 31, year 1, for $1,000 per share in a transaction that Pam treats as an exchange for tax purposes. Comet has total E&P of $250,000 on December 31, year 1. What are the tax consequences to Comet as a result of the stock redemption? A) No reduction in E&P as a result of the exchange. B) A reduction of $62,500 in E&P as a result of the exchange. C) A reduction of $50,000 in E&P as a result of the exchange. D) A reduction of $125,000 in E&P as a result of the exchange.
Answers: 2
Business, 21.06.2019 20:30
As a group is leaving, you ask them if they had a good experience at the restaurant. they mention that they had poor service and their food was cold. a.apologize and ask them to give the restaurant another chance in the future. you tell them that guests usually have a great experience here. b.apologize then ask for the serverβs name and immediately notify the manager after they leave. c.apologize for the bad experience and ask them to wait as you call the manager to talk to them. d.apologize for the bad experience and encourage them to complete the customer service survey. this feedback will ensure other guests do not have the same experience.
Answers: 2
Business, 22.06.2019 10:50
Melissa is a very generous single woman. before this year, she had given over $11,400,000 in taxable gifts over the years and has completely exhausted her applicable credit amount. in the current year, melissa gave her daughter riley $100,000 and promptly filed her gift tax return. melissa did not make any other gifts this year. how much gift tax must riley pay the irs because of this transaction?
Answers: 2
Business, 22.06.2019 12:30
Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?
Answers: 3
Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the compan...
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