Glenda Is the Sole Shareholder of Condor Corporation

question 33

Multiple Choice

Glenda is the sole shareholder of Condor Corporation. She sold her stock to Melissa on October 31 for $150,000. Glenda's basis in Condor stock was $50,000 at the start of the year. Condor distributed land to Glenda immediately before the sale. Condor's basis in the land was $20,000 (fair market value of $25,000) . On December 31, Melissa received a $75,000 cash distribution from Condor. During the year, Condor has $20,000 of current E & P and its accumulated E & P balance on January 1 is $10,000. Which of the following statements is true?

• A) Glenda recognizes a $110,000 gain on the sale of her stock.
• B) Glenda recognizes a $100,000 gain on the sale of her stock.
• C) Melissa receives $5,000 of dividend income.
• D) Glenda receives $20,000 of dividend income.
• E) None of the above.

Illustrate the role and function of transcription factors and sigma factors in transcription regulation.

Understand the characteristics and structures of various business entities, including corporations, sole proprietorships, partnerships, and limited liability companies (LLCs).

Identify the liability implications for owners or partners in different business forms.

Comprehend the taxation aspects of different business entities, particularly focusing on double taxation for corporations and pass-through taxation for entities like S corporations and partnerships.

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Definitions:

Services

Actions or activities provided to satisfy the needs and wants of consumers without resulting in the ownership of a tangible product.

Seller

An individual or entity that offers goods or services for sale.

Cash Discount

An incentive for early payment, reducing the buyer's total amount owed.

Net

Net signifies the final amount remaining after all deductions have been made, such as expenses, taxes, or discounts, from a total or gross amount.