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Mandarini Mandarini
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8 years ago
Checkers Corporation has a single class of common stock outstanding. Bert owns 100 shares, which he purchased five years ago for $200,000. In the current year, when the stock is worth $2,500 per share, Checkers Corporation declares a 10% stock dividend payable in common stock. Bert receives ten additional shares on December 10 of the current year. On January 25 of next year he sells all ten shares for $30,000.
a)   How much income must Bert recognize when he receives the stock dividend?
b)   How much gain or loss must Bert recognize when he sells the ten shares he received as a stock dividend?
Textbook 
Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts

Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts


Edition: 27th
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RimounRimoun
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8 years ago
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Mandarini Author
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8 years ago
finished my 2 tests in under 30 min thanks to you
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