Red Corporation is owned eighty percent (80%) by Helen and twenty percent (20%) by Freddie who are unrelated to each other. Pursuant to a Complete Liquidation, Red Corporation distributed Land that had a Fair Market Value on the date of distribution of $100,000 and a basis to Red Corporation of $600,000. The Land was acquired by Red Corporation in a Section 351 transfer two (2) years ago from Freddie when its Fair Market Value was $200,000. (Assume that there was no business purpose for the transfer). What is the Recognized Loss for Red Corporation if the Land is distributed entirely to Freddie?

You are an employee of an u.s. firm that produces personal computers in thailand and then exports them to the united states and other countries for sale. the personal computers were originally produced in thailand to take advantage of relatively low labor costs and a skilled workforce. other possible locations considered at that time were malaysia and hong kong. the u.s. government decides to impose punitive 100% ad valorem tariffs on imports of computers from thailand to punish the country for administrative trade barriers that restrict u.s. exports to thailand. how do you think your firm should respond? what does this tell you about the use of targeted trade barriers?

According to this excerpt, a key part of our national security strategy is

Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i.e., to have ebit = zero?