Business, 21.08.2020 02:01, Dragon63770
Crane Corporation has 2,000 shares of stock outstanding. It redeems 500 shares for $370,000 when it has paid-in capital of $300,000 and E & P of $1,200,000. The redemption qualifies for sale or exchange treatment for the shareholder. Crane incurred $13,000 of accounting and legal fees in connection with the redemption transaction and $18,500 of interest expense on debt incurred to finance the redemption. What is the effect of the distribution on Crane Corporation's E & P? Also, what is the proper tax treatment of the redemption expenditures?
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 03:00, zelds63481
Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d. select short-term savings instruments to lock in earnings at a current high rates.
Answers: 1
Business, 22.06.2019 10:30, karnun1201
Perez, inc., applies the equity method for its 25 percent investment in senior, inc. during 2018, perez sold goods with a 40 percent gross profit to senior, which sold all of these goods in 2018. how should perez report the effect of the intra-entity sale on its 2018 income statement?
Answers: 2
Business, 23.06.2019 23:00, hannahkharel2
"by three methods we may learn wisdom: first, by reflection which is noblest, second, by imitation, which is easiest, third, by experience, which is bitterest."
Answers: 1
Do you know the correct answer?
Crane Corporation has 2,000 shares of stock outstanding. It redeems 500 shares for $370,000 when it...
Questions in other subjects:
History, 27.09.2020 21:01
History, 27.09.2020 21:01
History, 27.09.2020 21:01
Social Studies, 27.09.2020 21:01
Mathematics, 27.09.2020 21:01
