Lehman Brothers (now bankrupt) was able to use an accounting strategy known as Repo 105 to spin debt off its books so that it appeared to be less leveraged than it was. Which of the following is correct?
a. Lehman's accounting strategy was similar to that of Enron.
b. Lehman's accounting strategy was similar to that of WorldCom.
c. Lehman's accounting strategy was similar to that of Bausch & Lomb.
d. Lehman's accounting strategy was similar to that of Tyco.
.A
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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?
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