Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Management Expert

Management Studies


Home >> Business Management

As a gift for her granddaughter Ella's 13th birthday, Melanie bought 500 shares of Soft'n Sales Corporation stock on September 25, 2005. Melanie bought the stock directly from the underwriter for $20,000. Soft'n Sales had just gone public, and Melanie believes the stock will be a good investment for Ella's college education. Melanie tells Ella that she will receive control of the stock on her 18th birthday so long as Ella maintains an A average in high school.

Soft'n Sales is a software development enterprise in San Diego. At the date of the public offering, its gross assets total $10 million. These assets include mostly intan- gibles, equipment, and raw materials for product development. The company owns no real estate and holds no investment securities. All capital is reinvested in the enterprise.

When Ella begins college in September 2010, the Soft'n Sales stock is worth $50,000. Explain Melanie's options for transferring the stock to Ella to use for college expenses. What are the tax implications of each option?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M91700825

Have any Question?


Related Questions in Business Management

What should be done to maintain optimum stock levels and

What should be done to maintain optimum stock levels and why is it important to keep accurate and up-to-date records of stock?

What are the differences between the federal aviation

What are the differences between the Federal Aviation Administration and the Civil Aviation Authority.

Derivation of the market demand curveassume the individual

Derivation of the Market Demand Curve. Assume the individual demand curves for three consumers: Q demanded Daniel = 10 - 0.05 P Q demanded Sandra = 24 - 1.5 P Q demanded Felix = 32 - 4 P Please derive demand curve for th ...

Compare and contrast the effectiveness of the response to

Compare and contrast the effectiveness of the response to the September 11, 2001 terrorist attacks on New York and the Pentagon. What factors do you feel led to such a difference in the response effectiveness? Please be ...

Can you please direct me on how i should go about

Can you please direct me on how I should go about describing an interview by providing 3 structured behavioral questions? Choose a job that you are interested in. You may relate it to your term project by choosing a movi ...

Design a moore machine where the output y goes high 1 when

Design a Moore machine where the output Y goes high (=1) when the last four bits of the input X were 1110: 4th to last bit seen = 1 3rd to last bit seen = 1 2nd to last bit seen = 1 Last bit seen = 0 Your machine must be ...

Economic home work explain the difference between cost in

Economic home work: explain the difference between cost in short run and long run, supporting your answer with graphs and examples where needed.

Er database modeling questionemployees have an id name

ER database modeling question: Employees have an id, name, department and datejoined. A manager who is also an employee is managing a department and can be a manager of several employees in that department. Ignore Depart ...

Discussion topic 1discussion topicupdateddiscuss the

Discussion Topic 1 Discussion Topic Updated Discuss the following topics after you have completed your Reading. HR Strategy and Human Capital Reporting Read the article below found in the Library. Bassi, L., Creelman, D. ...

There is a psychopathic disorder checklist that an

There is a psychopathic disorder checklist that an organization is in accordance with. Explain the approach that a leader can use to change the characteristics within the organization. What kind of framework can be used ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved