Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1.i own 100 shares out of 400 outstanding of the m

1.I own 100 shares out of 400 outstanding of the MSH corporation. I acquired the...

60.1K

Verified Solution

Question

Accounting

1.I own 100 shares out of 400 outstanding of the MSH corporation. I acquired the shares for $1 per share, and they are now worth $5 per share. MSH corporation distributes $500 to me in complete redemption of my 100 shares, which I remitted back to MSH corporation. MSH corporations accumulated E&P prior to the distribution was $4,000.

Q; What's the tax result to me and MSH Corporation if MSH corporation paid me $6 per share, and I also signed a covenant not to compete with MSH?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students