Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
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Chapter 32, Problem 9Q
Summary Introduction
To discuss: Rights of person D against company R and persons A, B and C.
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In 2022, Rebecca formed Black Corporation, a C-Corporation. Rebecca transferred real.
estate with an adjusted basis of $260,000 and a fair market value of $390,000 in
exchange for 100% of Black Corporation's common stock. The real estate was
encumbered by a mortgage of $290,000, which Black Corporation assumed. The total
value of Black Corporation's common stock after formation was $100,000.
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estate transfer to Black Corporation?
b) What basis does Rebecca take in her Black Corporation stock?
c) What basis does Black Corporation take in the real estate contributed by
Rebecca?
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Paul Bunyan is the owner of noncumulative 8 percent preferred stock in the Broadview Corporation, which had no earnings or profits in 2012. In 2013, the corporation had large profits and a surplus from which it might properly have declared dividends. The directors refused to do so, however, instead using the surplus to purchase goods necessary for the corporation’s expanding business. The corporation earned a small profit in 2014. The directors at the end of 2014 declared a 10 percent dividend on the common stock and an 8 percent dividend on the preferred stock without paying preferred dividends for 2013. a. Is Bunyan entitled to dividends for 2012? For 2013? b. Is Bunyan entitled to a dividend of 10 percent rather than 8 percent in 2014?
A limited partner is responsible for any debts of the partnership, regardless of whether he or she was directly involved in the transaction that created the debt.;True or False
Chapter 32 Solutions
Smith and Roberson’s Business Law
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