Atkon Corporation acquired 90% of the stock of Beta Corporation three years ago. Both corporations are located in the United States. Beta has been an energy drink producer, but unfortunately has suffered substantial losses due to government fines and lawsuits. All of its revenues had been from the sales of the energy drinks. Beta has now filed for bankruptcy and is closing the business with no
assets remaining for shareholders. Atkon Corporation will recognize
A) a long-term capital loss.
B) a short-term capital loss.
C) an ordinary loss.
D) no gain or loss.
C) an ordinary loss.
Ordinary loss treatment is allowed when the shareholder-corporation owns at least 80% of the worthless stock of a corporation which had earned more than 90% of its gross receipts from nonpassive income.
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Three major organizations in the private and public sector develop U.S. and International Financial Reporting Standards. They include all of the following except the
A) EU (European Union). B) SEC (Securities and Exchange Commission). C) FASB (Financial Accounting Standards Board). D) IASB (International Accounting Standards Board).
Using the Direct Method For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the direct method. When using the direct method, where is the payment of a cash dividend shown on the statement of cash flows?
A) Operating activity B) Investing activity C) Financing activity D) Noncash investing and financing activity
Which of the following is an example of a procedural rule in operation?
A) a Social Security recipient being entitled to receive a check for a large amount B) a Medicare recipient contacting a member of Congress to complain about the confusing health care system in the United States C) the Internal Revenue Service giving notice to all parties involved in an agency hearing D) the U.S. Department of Health and Human Services referring a client to a state agency better suited to handle his or her problem
Please complete the ______ questions on the application form on a separate piece of paper
A) last two B) two last