A spin-off is when
A) a company buys a security for a very short period of time and then sells it.
B) a bond is retired through the issuance of another bond.
C) part of a company which is usually a distinct business unit is separated from the parent company and shares of the divested company are distributed to the parent's stockholders.
D) a company acquires another company in a different industry.
E) a company acquires another company in the same industry.
C
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Ramos Corporation reported the following equity section on its current balance sheet
The common stock is currently selling for $18.00 per share. Common Stock, $5 par, 194,000 shares authorized, 143,000 shares issued and outstanding $715,000 Paid-In Capital in Excess of Par-Common 130,000 Retained Earnings 301,000 Total Stockholders' Equity $1,146,000 After the declaration and distribution of a 20% stock dividend, what is the total number of common shares issued? A) 13,000 B) 160,160 C) 143,000 D) 17,160
Andrew and Jennifer are in the 25% marginal tax bracket. Three years ago they purchased 100 shares of stock at $20 a share. In 2015, they sold the 100 shares for $29 a share
What is the amount of federal income tax they owe as a result of this sale? A) $135 B) $165 C) $225 D) $435