Discuss the tax consequences of a complete liquidation to the liquidated corporation and to the shareholders.
What will be an ideal response?
The liquidated corporation generally recognizes gains and losses on distributions of property. A restriction is placed on recognition of losses in related party situations if the property is not distributed pro rata to all shareholders or consists of disqualified property. Disqualified property is property acquired by the liquidating corporation in certain tax-free transfers from shareholders during the five-year period preceding the distribution.
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The traditional command and control type of leadership structure does not encourage:
A) Risk and innovation B) Diplomacy and understanding C) Democracy and charter D) Industry and invention
An employee might work four 10-hour days each week and then enjoy a three-day weekend, or work 80 hours in nine days with an extra day off every other week. This is an example of
a. Flextime b. Compressed workweek c. Job sharing d. Telecommuting
In United States v. Mead Corporation, where Mead sued Customs when it changed the classification of the planners Mead imported which resulted in Mead having to pay a 4% tariff, the Supreme Court held that:
a. the change in classification was unjustified so Mead did not owe any tariffs b. the case should be thrown out for lack of evidence c. all rulings by Customs are equivalent to federal law so Mead had no case d. Mead should pay a 2% tariff as a compromise e. none of the other choices are correct
An opportunity cost is the cost of not doing something.
Answer the following statement true (T) or false (F)