ID assignment WK 4 upload - Chapter66:5DQ...

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Chapter 6 6:5 DQ Compare the tax consequences to the shareholder and the distributing corporation of the following three kinds of corporate distributions: ordinary dividends, stock redemption,  and complete liquidations In chapter 6 page 6-3 it stateds that the corporation must be in a liquidation status when it makes the first liquidating distribution under the plan, and such status must continue until the liquidation is completed A distribution made before the corporation adopts a plan of liquidation is taxed to the shareholders as a vididends distribution or stock redemtipon. Liquidation status exist when the corporation cease to be going concerns and it activities are for the purpose of winding up its affairs, paying its debts, and distributing any remaining property to its shareholders.   Dissolution is a legal term that implies the corporation has surrendered the charter it receives from the state.  A corporation may comple4te its liquidation before surrendering its charter to the state and undergoing dissolution.  Dissolution may never occur if the corporation retains its charter to protect the corporate name from being acquired by another party
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This note was uploaded on 01/14/2012 for the course ACCOUNTING ACC 455 taught by Professor Unknown during the Spring '11 term at University of Phoenix.

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ID assignment WK 4 upload - Chapter66:5DQ...

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