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5 ) An investor takes a 1 0 % stake in a large publicly traded corporation and then succeeds in pressuring the board of the
An investor takes a stake in a large publicly traded corporation and then succeeds in pressuring the board of the company to make various internal changes that should improve the value of the firm.
Later, the investor decides he wants to sell his stock, but he cannot find anyone to buy it as a block. To keep the stock from being sold on the open market and depressing the price, the company agrees to repurchase the investors entire block of stock at a price exceeding his basis.
What is the proper tax treatment of this share redemption, from the point of view of the investor?
Sarah Smiles sells her interest in Smiles Inc., an S corporation, to Frankie Frownie on January
Smiles Inc. earned $ from January to January and a total of $ from January through December days
Using the daily allocation method, how much income should Sarah Smiles report?
Walsteins an S corporation, reports the following results for the current year:
Ordinary income $
Longterm capital gain $
Municipal bond interest income $
Walsteins makes a $ cash distribution to its sole shareholder during the year. The shareholder's basis for Walsteins stock on January was $
How much of the distribution will be taxable?
An individual owns of the stock of an S corporation. At the beginning of the year, the basis for that share of the stock is $
During the year, the corporation has ordinary income of $ bond income of $ longterm capital gains of $ and a shortterm capital loss of $
The corporations tax year is the same as the calendar year.
What is the individuals basis at the end of the year?
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