Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. liam, a shareholder in lager, inc., (a c corporati

Liam, a shareholder in Lager, Inc., (a C corporation), would like to sell 800 of...

50.1K

Verified Solution

Question

Accounting

Liam, a shareholder in Lager, Inc., (a C corporation), would like to sell 800 of his shares of stock in Lager. Since Lager is not traded on an exchange, the only way to sell is the stock is by having Lager redeem the stock. The fair market value of the 800 shares of stock is $200,000. Liam purchased the stock 10 years ago for $95/share. Lager has E&P of $700,000. The corporate stock in Lager is held as follows: Liam 2,000 shares Jennifer (Liams sister) 2,000 shares Katherine (Liams mother) 2,000 shares Beer Partnerships (Liam has a 30% interest) 4,000 shares 10,000 shares

If this transaction is treated as a distribution (i.e. this transaction is NOT a qualified stock redemption), how much tax must Liam pay? (Liam does not have any additional capital transactions).

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

Let R have the Euclidean inner product. For which values of k are u and...

Algebra
Q

solve the given initial value problem using the method of Laplace transforms. Y'' + Y = U(t-4pi)...

Basic Math
Q

Post a news story of an external issue that affects at least one company. Discuss and...

Economics
Q

1) Some researchers have argued that paraphyletic groups are not “real” and should not be used...

Biology
Q

11. Determine the p-value given the stated hypothesis and the test statistic value (Z) Ho:?= 300...

Basic Math
Q

How does the sodium potassium pump make the interior of the cell negatively charged O...

Biology
Q

Convert the following angle to decimal degree notation.-19 6'-19 6'=(Round to two decimal places as...

Basic Math
Q

Solve 3x 4 4x 8 3 8x 1 X

Algebra
Q

3. How do you gather competitive information? Why do you want to know about competition?...

Accounting
Q

The contribution format for an income statement: ...

Accounting
Q

Consider the project described in the table below. What is the project's payback period? Cost...

Accounting
Q

lournalize and Post Month 1 Bob Night opened The General's Favorite Fishing Hole. The fishing...

Accounting