Question
1. Joanne owns 50% of the Albert Corporation. She originally paid $60,000 for the stock at the time the company was created. In 2019, she
1. Joanne owns 50% of the Albert Corporation. She originally paid $60,000 for the stock at the time the company was created. In 2019, she sold 1/2 of her shares to Albert l for $20,000. Albert is not related to her. How does Joanne account for the sale?
Alternatively, Joanne sold 1/2 of her shares to Albert who was brother. Her basis was $110,000 in all of her shares and she sold 1/2 for $49,000. How does Joanne account for the sale?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
