Longhorn Company Reports Current E&P of $100,000 in 20X3 Anda

question 112

Multiple Choice

Longhorn Company reports current E&P of $100,000 in 20X3 anda deficit of ($200,000) in accumulated E&P at the beginning of the year. Longhorn distributed $300,000 to its sole shareholder on January 1, 20X3. The shareholder's tax basis in his stock in Longhorn is $100,000. How is the distribution treated by the shareholder in 20X3?

• A)$300,000 dividend
• B)$100,000 dividend, $100,000 tax-free return of basis, and $100,000 capital gain
• C)$100,000 dividend and $200,000 tax-free return of basis
• D)$0 dividend, $100,000 tax-free return of basis, and $200,000 capital gain

Explain the construct of organizational politics and its dual impacts within organizations.

Understand the concept of bounded ethicality and its implications in ethical decision-making.

Recognize the factors that can lead to unethical behavior in individuals and organizations.

Identify the roles and challenges faced by whistle-blowers within organizations.

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Definitions:

Committed Position

A stance in a negotiation or argument that a party insists on and is unwilling to change, often making it harder to reach a compromise.

Skilled Negotiators

Individuals who excel in navigating negotiation processes, effectively managing communication, relationships, and tactics to achieve desired outcomes.

Settlement

The resolution or agreement reached after a dispute or negotiation.

Concession

An act of yielding or compromising in a disagreement, where one party agrees to make a change or give up something in order to reach an agreement.