Sweeney was the chairman of Sweeney, Inc., a large hardware and lumber store. When Sweeney became ill,
Question:
Sweeney was the chairman of Sweeney, Inc., a large hardware and lumber store.
When Sweeney became ill, his son took over the business but sold the property and all of the inventory of lumber valued at $2,000,000 within a year. Shortly thereafter, Sweeney recovered and took control of the corporation.The corporation purchased a new building and started a new hardware store.This store, although slightly larger than the original store, did not carry any lumber.
Sweeney changed the name of the corporation, and the board authorized a plan of partial liquidation. Pursuant to that plan, the original shares of the corporation were replaced, and Sweeney distributed almost $2,000,000 to the shareholders as part of the partial liquidation. Each shareholder received $5,000 and one share of stock for every two of the old corporation that were owned.
AppendixLO1
Step by Step Answer:
Taxation For Decision Makers 2008
ISBN: 9780324654110
2nd Edition
Authors: Shirley Dennis-Escoffier, Karen A. Fortin