64] Gleim #: 14.3.70 Cat Corporation, a calendar-year, accrual-basis taxpayer, distributed shares of Fish Corporation...
80.2K
Verified Solution
Link Copied!
Question
Accounting
64] Gleim #: 14.3.70 Cat Corporation, a calendar-year, accrual-basis taxpayer, distributed shares of Fish Corporation stock to Cats employees in lieu of salaries. The salary expense would have been deductible as compensation if paid in cash. On the date of the payment, Cats adjusted basis in the Fish Corporation stock distributed was $25,000, and the stocks fair market value was $85,000. What is the tax effect to Cat Corporation? $25,000 deduction. $25,000 deduction; $60,000 recognized gain. $85,000 deduction. $85,000 deduction; $60,000 recognized gain.
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!
