Hogg Corporation Distributes $30,000 to Its Sole Shareholder, Ima

question 95

Multiple Choice

Hogg Corporation distributes $30,000 to its sole shareholder, Ima. At the time of the distribution, Hogg's E&P is $14,000 and Ima's basis in her stock is $10,000. Ima's gain from this transaction is a

• A) $20,000 capital gain.
• B) $14,000 capital gain.
• C) $6,000 capital gain.
• D) $30,000 capital gain.

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Definitions:

Impression Management

The process by which individuals attempt to control the perceptions others have of them, often through adjusting their behavior or presentation in social situations.

Status Enforcement

The actions taken to maintain social hierarchies or class distinctions within a group or society.

Dramaturgy

A sociological perspective developed by Erving Goffman that compares social interaction to the theater, where individuals present themselves in ways they hope will be accepted by others.

Workplace Efficiency

The measure of how effectively and productively resources are utilized to achieve organizational goals with minimal waste.