Yolanda Owns 60% of the Outstanding Stock of Amber Corporation

question 35

True/False

Yolanda owns 60% of the outstanding stock of Amber Corporation. In a qualifying stock redemption, Amber distributes $20,000 to Yolanda in exchange for one-half of her shares (basis of $35,000). As a result of the redemption, Yolanda has a recognized capital loss of $15,000.

---

Definitions:

Monthly Standard Deviation

A statistical measure that represents the variability or volatility of an asset's returns over a month.

Market Rate of Return

The average rate of return anticipated by investors in the overall market for a particular investment category.

Collection Float

The time period between when a check is deposited and when it is cleared and the funds are available.

Outstanding Cheques

Checks that have been written and recorded in the issuer's financial statements but have not yet been cashed or cleared by the bank.