Bluebird Corporation Owns and Operates Busses and Has Decided to Liquidate

question 34

Essay

Bluebird Corporation owns and operates busses and has decided to liquidate its operations. Victor, who owns 80% of the company's stock, will receive all of the busses, repair parts inventory, and all tools and equipment. He plans to start a bus company in another town. Penny, who owns 20% of the stock, wants nothing to do with the new bus business and will receive a cash distribution. Bluebird will incur about $20,000 of expenses in connection with the liquidation. What tax issues should Victor, Penny, and Bluebird consider with respect to the liquidation?

---

Definitions:

Roles

The expected behavior patterns attributed to someone occupying a given position in a social unit.

Responsibilities

Duties, tasks, or obligations that an individual is expected or required to fulfill.

Directive Leadership

A leadership style characterized by giving clear, direct instructions and closely supervising tasks to ensure compliance and achieve goals.

Co-leadership

A leadership approach involving two or more people sharing the leadership responsibilities and roles in an organization or project.