15 SG Questions 1

15 SG Questions 1 - a . Yes b . No 4. On January 15, Gamma...

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Return to Menu Navigation Test Your Knowledge 1. Gamma Corporation plans to distribute one-quarter of a share of its stock to the record owner of each of its shares of stock. Will that distribution be taxable? a . Yes b . No 2. Gamma Corporation plans to distribute one share of its stock to the record owner of each of its shares of stock. Pursuant to its articles of incorporation , one shareholder has the option of receiving cash instead of one-quarter of the shares distributed to that shareholder. Will the distribution be taxable to the other shareholders? a . Yes b . No 3. Gamma Corporation plans to distribute one share of its stock to the record owner of each of its shares of Class A common stock and $1 in cash to each of its shares of Class B common stock. Will the distribution be taxable?
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Unformatted text preview: a . Yes b . No 4. On January 15, Gamma Corporation plans to distribute one share of its stock to the record owner of each of its shares of Class A common stock. Three years and one day later it plans to distribute $10 in cash to the record owner of each of its shares of Class B common stock. Will the distribution of shares be treated as a taxable distribution? a . Yes b . No 5. Gamma Corporation plans to distribute one share of its Class A common stock to the record owner of each of its shares of Class A common stock and half a share of preferred stock (convertible into one share of Class B common stock) to the record owner of each of its shares of Class B common stock. Is the distribution taxable? a . Yes b . No Check Answers...
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This note was uploaded on 01/14/2012 for the course ACCT 101 taught by Professor Smith during the Spring '11 term at UT Arlington.

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15 SG Questions 1 - a . Yes b . No 4. On January 15, Gamma...

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