Parent Corporation Owns 100% of the Stock of Subsidiary Corporation

question 96

Essay

Parent Corporation owns 100% of the stock of Subsidiary Corporation. The adjusted basis of its stock investment
$100,000. A plan of liquidation is adopted. Subsidiary distributes to Parent assets with a $325,000 FMV and a $27 adjusted basis. Subsidiary also distributes liabilities in the amount of $40,000. Subsidiary has a $150,000 E&P bal
a) What is the amount and character of Subsidiary Corporation's recognized gain or loss on the distribution?
b) What is the amount and character of Parent Corporation's recognized gain or loss on the redemption of the Subsidiary stock?
c) What basis does Parent take in the assets?
d) What happens to parent Corporation's basis in the Subsidiary stock and to Subsidiary's tax attributes?

Describe the goal of comparative management studies and the importance of intercultural competencies.

Understand the universality of management theories in different contexts.

Identify and describe the three global management attitudes.

Differentiate between tight and loose cultures with relevant examples.

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Definitions:

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception.

Compulsions

Actions or thoughts repeatedly carried out by a person compelled by an obsession or by strict rules.

GAF

Global Assessment of Functioning; a numeric scale (0 to 100) used by mental health clinicians and physicians to subjectively rate the social, occupational, and psychological functioning of adults.

Axis 4

Refers to the classification in previous versions of the Diagnostic and Statistical Manual of Mental Disorders (DSM) that dealt with psychosocial and environmental problems affecting diagnosis, treatment, and prognosis.