Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2 george transfers cash of $150,000 to finch corpo

2 George transfers Cash of $150,000 to Finch Corporation, a newly formed corporation, for 100%...

70.2K

Verified Solution

Question

Accounting

image

2 George transfers Cash of $150,000 to Finch Corporation, a newly formed corporation, for 100% of the stock in Finch worth $60,000 and debt in the amount of $70,000, payable in equal annual installments of $7,000 plus interest at the rate of 9% per annum. In the first year of operation, Finch has net taxable income of $40,000. If Finch pays George interest of $5,300 and $7,000 principal payment on the note: a. George has dividend Income of $7,000. b. Finch Corporation has an interest expense deduction of $5,300. c. George has dividend income of $13,300. d. Finch Corporation does not have a tax deduction with respect to the payment. e. None of these choices are correct. TTTTTTTTTTTTT

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Topic: synaptic plasticity, mechanisms, and the relationship between synaptic plasticity and learning/memory as well. ( write...

Medical Sciences
Q

A liquid at 300 F flows through a 3-in. steel pipe (schedule 40) covered with a...

Mechanical Engineering
Q

A toy rocket that weighs 10 N blasts straight up from ground level with an...

Physics
Q

1 2 Given graph is a plot of magnitude of normal limiting friction kinetic friction...

Physics
Q

Use the graph above to answer the following questions:How is the data in the graph...

Statistics
Q

A marine diesel company produces one engine a month One year in January they add...

Statistics
Q

If g x 3x 1 and f x 9 x then which of the following...

Calculus
Q

Rewrite as a single logarithm 4 In 4x5 In 16x4 In 20 256 In 256...

Algebra
Q

Write a case brief 160 Business Law Today: The Essentials 5-7. Copyright...

Accounting
Q

Using the aging method of accounts receivable method, $6,300 of the company's Accounts Receivable are...

Accounting
Q

6. Which of the following Threats to The Fundamental Principles of professional ethics, that may...

Accounting
Q

Dana

Accounting