Liang Corporation has only one (1) class of stock outstanding consisting of two hundred (200)...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Liang Corporation has only one (1) class of stock outstanding consisting of two hundred (200) shares owned by Denee and Karen who are unrelated. Denee owns one hundred (120) shares and Karen owns eighty (80) shares. Liang Corporation redeemed (bought back) forty-eight (48) of Denee's shares for $300 per share ($14. 400 total). Denee paid $200 per share for her stock in Liang Corporation three (3) years ago. Assuming that Liang Corporation has substantial Earings And Profits (E&P), how wil Denee be taxed on the redemption of her stock?
Dividend Income of $14,400. O Long- Term Capital Gain of $9,600. Long-Term Capital Gain of $14,400. Long-Term Capital Gain of $4,800.
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.