Nike Corporation is owned equally by Sven and his wife Olga, each of whom hold 100 shares
Question:
Nike Corporation is owned equally by Sven and his wife Olga, each of whom hold 100 shares in the company. Nike redeemed 75 shares of Sven's stock for $2,000 per share on December 31, 20X3. Nike has total E&P of $500,000. What are the tax consequences to Nike because of the stock redemption?
Boss, Incorporated manufactures sandals and distributes them across the southwestern United States. Assume that Boss has sales and use tax nexus in Arizona, California, Colorado, New Mexico, and Texas. Boss has sales as follows:
State | Goods |
---|---|
Arizona | $583,442 |
California | 1,004,139 |
Colorado | 487,332 |
New Mexico | 274,076 |
Oregon | 503,100 |
Texas | 892,224 |
Utah | 302,237 |
Totals | $4,046,550 |
Assume the following sales tax rates: Arizona (6 percent), California (8 percent), Colorado (7 percent), New Mexico (6.5 percent), Oregon (7.25 percent), Texas (8 percent), and Utah (5 percent). What is Boss's total sales and use tax liability?
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson