Question antoinette owns 400 shares of common stock of, Ask an Expert

Finance

Question: Antoinette owns 400 shares of common stock of Gertz Incorporated which she acquired on May 29, 2000, for $50,000. On April 24, 2013, Antoinette received 40 shares of Gertz's common stock. The fair market value of the 40 shares on April 14, 2013, was $15,200. Gertz's current E&P for 2013 was $30,000.

a. Assuming that the stock dividend was a proportionate dividend and no other distribution options were available, determine Antoinette's taxable income and Antoinette's basis in the 400 shares and the 40 shares, as well as each group's holding period. If she sold the 40 shares for $16,000 on October 17, 2013, then what is her gain or loss and what is its character?

b. Compute Antoinette's taxable income, basis in the shares and their holding periods assuming that the stock dividend was disproportionate. If she sold the 40 shares on October 17, 2013, for $14,000, then what is her gain or loss and what is its character?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92771975

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Roll tide inc has 10000 shares of common stock outstanding

Roll Tide, Inc. has 10,000 shares of common stock outstanding at a price of $18 a share. The firm's beta is 1.3 and the market risk premium is 6.5%. The Treasury bill rate is 3.5%. There are 9,000 shares of preferred sto ...

Question - phone ltd plans to open an outlet at a shopping

Question - Phone Ltd plans to open an outlet at a shopping mall. The investment requires an initial outlay of $90,000 which is expected to be financed through a bank loan. A discussion with the mall management reveals th ...

Question - laine needs to save up 4000 in 4 years if she

Question - laine needs to save up $4000 in 4 years. If she can set aside $1000 today, what rate of return does she need on her account? Elaine needs to save up $4000 in 4 years. If she can set aisde $50 per month what ra ...

For an 18-year fixed payment loan for 200000 with an annual

For an? 18-year fixed payment loan for? $200,000 with an annual interest rate of? 5.20% and making QUARTERLY? payments, what percent of your first payment would apply to the? principal?

Zero-coupon bonds with a par value of 1000000 have a

Zero-coupon bonds with a par value of $1,000,000 have a maturity of 10 years and a required rate of return of 9 percent. What is the current price?

Joshua borrowed 500 on january 1 2017 and paid 25 in

Joshua borrowed $500 on January 1, 2017, and paid $25 in interest. The bank charged him a service charge of $10. He paid it all back at once on December 31, 2017. What was the APR? (Enter your answer as a percent rounded ...

How to make sure that no patients information will be

How to make sure that no patient's information will be accessed without authorization during implementation of Electronic Health Records in a hospital. What are the steps to follow?

What is the standard hedge fund hf compensation structure

What is the standard hedge fund (HF) compensation structure and how do high watermark provision benefit or impose costs on HF investors?

Prepare a amortization schedule for a five-year loan of

Prepare a amortization schedule for a five-year loan of $71,000. The interest rate is 7 percent per year, and the loan calls for equal annual payments. YEAR BEGINNING BALANCE TOTAL PAYMENT INTEREST PAYMENT PRINCIPAL PAYM ...

The difference between the terminal value of the two kinds

The difference between the terminal value of the two kinds of annuity payments can be substantial as the number of years increases or the interest rate rises. Consider an individual retirement account (IRA) in which you ...

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

Recent Questions

Ask Basic Finance Expert