C owns 60 hsares and D owns 40 shares of Z corporation, representing all of...
60.1K
Verified Solution
Link Copied!
Question
Accounting
C owns 60 hsares and D owns 40 shares of Z corporation, representing all of the outstandign shares. C and D are otherwise unrelated individuals. C sells all of the Z stock to D for $600 in cash and $3,000 in notes payable over a 20 year period. Z pays off D's notes as payments fall due.
a Under these facts, C may transfer the obligation to Z without any additional tax implications.
b Under the Wall case, D would receive corporate distributions from Z. If E&P is present, there would be a dividend.
c Neither of the above.
Which is the correct answer and explain why?
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.