On May 18 of Last Year,Carter Sells Unlisted Stock with a Cost

question 42

Multiple Choice

On May 18 of last year,Carter sells unlisted stock with a cost of $24,000 for $60,000.Carter collects $20,000 initially and is scheduled to receive $10,000 each year for four years starting this year plus an acceptable rate of interest.After receiving the first $10,000 scheduled installment payment,Carter is unable to collect any further payments.After incurring legal fees of $1,000,Carter recovers a portion of the stock valued at $26,000.As a result of the repossession,Carter must report

• A)ordinary income of $9,000.
• B)capital gain of $9,000.
• C)ordinary income of $13,000.
• D)capital gain of $13,000.

Identify the legal framework for incorporating and the role of articles of incorporation.

Explain the legal responsibilities and duties of directors towards the corporation and its stakeholders.

Understand the significance of shareholder agreements in defining rights and responsibilities within closely held corporations.

Discuss the legislative and regulatory environment governing corporate operations and securities in Canada.

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Definitions:

RAM

Random Access Memory, a type of computer memory that can be accessed randomly, used for storing data temporarily while a computer is running.

EEPROM

An Electrically Erasable Programmable Read-Only Memory, a type of non-volatile memory used in computers and other devices to store small amounts of data that must be saved when power is removed.

Filter Section

A part of a system designed to remove or block certain frequencies or types of data, often to clean or optimize the input or output.

Electrical Noise Interference

Disturbances in electrical signals caused by external sources that can disrupt or degrade the performance of electronic equipment.