Viking Corporation is owned equally by Sven and his wife, Olga, each of whom hold 100 shares in the company. Viking redeemed 75 shares of Sven's stock for $2,000 per share on December 31, 20X3. Viking has total E&P of $500,000. What are the tax consequences to Viking because of the stock redemption?
A. No reduction in E&P because of the exchange.
B. A reduction of $150,000 in E&P because of the exchange.
C. A reduction of $375,000 in E&P because of the exchange.
D. A reduction of $187,500 in E&P because of the exchange.
Answer: B
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Yolanda is not very motivated at her car sales job. She knows the probability is high that if she works hard, she will meet her weekly quota of selling five cars. If she meets her quota, her boss gives her a gift card for a free cup of coffee. Yolanda does not like coffee, thus she does not work very hard to meet her quota. According to this scenario, Yolanda is not motivated because there is a lack of ______.
A. expectancy B. instrumentality C. effort D. valence
Which of the following bonds would have the greatest percentage increase in value if all interest rates fall by 1%?
A. 20-year, 10% coupon bond. B. 20-year, 5% coupon bond. C. 1-year, 10% coupon bond. D. 20-year, zero coupon bond. E. 10-year, zero coupon bond.
The view that leadership performance is dependent upon personality and genetics comes from which theory?
a. Situational theory b. Trait Theory c. Contingency Theory d. Behavioural Theory
All of the following agreements lack consideration except:
A) A promise by an adult not to smoke in exchange for a payment of money. B) A promise that is based on a prior act or performance. C) A promise made out of a sense of moral obligation. D) A contract supported by a promise to refrain from doing an illegal act.