Two unrelated individuals, dave and tom, own all the stock of arnold corporation, which has earnings and profits of $400,000. because of his inactivity in the business for the last several years, dave has decided to retire from the business completely and move to oregon. accordingly, arnold corporation will redeem all the stock owned by dave and, in return, dave will receive a distribution of $500,000. dave's adjusted basis in the stock is $250,000. what will be the tax effect to dave?

You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. recently, you saw that stubhub was listing similar seats for $225 apiece. what does it cost you to attend the concert?

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of

Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less