Casey Corporation Has Three Assets When It Decides to Liquidate

question 30

Multiple Choice

Casey Corporation has three assets when it decides to liquidate: The corporation sells the stock for its fair market value and distributes the other two assets to its sole shareholder.What is its tax liability on its final tax return if it had $45,000 of income from operations prior to liquidating?

• A)$6,750
• B)$5,000
• C)$3,750
• D)$750

Evaluate the role and evolution of bureaucracy within contemporary society.

Understand the distribution of power and responsibilities between different levels of government in Canada.

Recognize the structure and focus of modern advanced industrial societies.

Analyze the role of power dynamics in organizational and societal structures.

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Definitions:

Negotiates

The process by which parties come together to try and reach an agreement on a matter, often involving discussion and compromise.

Fictitious Payee Rule

A legal principle that holds a drawer of a check responsible when funds are obtained by fraud, if the drawer fails to exercise caution in issuing the check.

Immediate Loss

Financial damage or cost incurred directly as a result of an event, action, or decision, without any delay.

Forged Instruments

Documents that are illegally altered or created to deceive or commit fraud.