Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. dc (a public company) owns cfc, which has $200 of

DC (a public company) owns CFC, which has $200 of good earnings (earnings not from...

90.2K

Verified Solution

Question

Accounting

DC (a public company) owns CFC, which has $200 of good earnings (earnings not from subpart F income). Let's say that CFC has $200 of cash from the $200 earnings.

(a) What is the result if CFC used its $200 of earnings to purchase $200 of DC stock from the public?

(b) What is the result if CFC forms a new CFC2 in the Bahamas and transfers the $200 to CFC2 in a section 351 exchange and then CFC2 purchases the DC stock? Assume that CFC2 has no earnings for its first year.

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

Physics
1.2K views

nic ns sity me ng OW 16 Which orbital diagram gives an insight to the...

Physics
1.2K views

Two copper plates 0.50cm thick have a 0.10mm sheet of glass sandwiched between them. One copper...

Physics
1.2K views

Some people are able to spin a basketball on the tip of a finger. It is...

Basic Math
1.2K views

Label the type of each variable listed in the dataset as either quantitative or categorical, and...

Biology
1.2K views

When both inside and outside of a cell have the same amount of water it...

Biology
1.2K views

Researchers investigated the effect of urea on the three-dimensional structure of a certain enzyme. The...

Basic Math
1.2K views

Assume you are rolling two dice the first one is red and the second one...

Basic Math
1.2K views

In a connected graph with no loops of multiple edges and with 28 edges waht...

Basic Math
1.2K views

A tent is in the shape of a cylinder surmounted by a conical top. If...

Calculus
1.2K views

Provide your answer below TT TT 2 2 34 1 0 1 2 TT 2...

Accounting
1.2K views

The following Informatlon is departmental cost allocation with two service departments and two production departments...

Accounting
1.2K views

How do I get this answer [The following information applies to the questions displayed...