Nice, Inc, a § 501(c)(3) Organization, Inherited 100% of the Stock

question 78

Essay

Nice, Inc., a § 501(c)(3) organization, inherited 100% of the stock of Aggressive, Inc., a for-profit entity, at the beginning of the year.Although Nice plans on selling the stock of Aggressive, a buyer has not yet been located.Aggressive's taxable income for the year is $600,000.Aggressive distributed a dividend of $450,000 to Nice at the beginning of December.Determine the tax consequences for the taxable income and the dividend payment to Aggressive, Inc.

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Definitions:

Unconditional Positive Regard

A concept in client-centered therapy involving total acceptance and support of a person regardless of their behavior or feelings.

Conditions of Worth

Refers to the criteria set by external sources, such as parents or society, that individuals believe they must meet to be valued or loved.

Unconditional Positive Regard

A term in humanistic psychology referring to an attitude of total acceptance and support towards another person, regardless of what they say or do.

Positive Regard

Acceptance, love, and approval from others.