Transferring corporate assets to shareholders for less than fair market value is a form of Multiple Choice looting. piercing. authorizing. O capitalizing.
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- List the potential conflict of interests between shareholders, executives and other stakeholders due to share repurchase.Generally, the value in use of the acquiree's net assets is more than the original equity market value because of the value of control. True or False?Which of the following statements is incorrect? Earnings and profits are conceptually similar to retained earnings. A distribution from earnings and profits in excess of stockholder basis is a nontaxable return of capital. A distribution of appreciated property creates a gain to the corporation. Distributions paid in excess of earnings and profits are nontaxable to the extent of stockholder basis.
- Identify the conflict between the goal of shareholder wealth maximization and other stakeholder concerns (sometimes referred to as environmental, social, and governance (ESG) concerns).Evaluate the similarities and differences between trusts and corporations. In an attempt to protect income, which would be most suitable for a company?Which activities changes equity but does not affect a corporation's assets and liabilities?
- Distinguish between paid-in capital and retained earningsof a corporation. Why is such a distinction useful?1. What is the accounting treatment for a corporate organization cost? a. Operating expense b. Other asset c. Intangible asset d. Deduction from share capitalChoose the correct. Under fair-value accounting for an equity investment, which of the following affects the income the investor recognizes from its ownership of the investee?a. The investee’s reported income adjusted for excess cost over book value amortizations.b. Changes in the fair value of the investor’s ownership shares of the investee.c. Intra-entity profits from upstream sales.d. Other comprehensive income reported by the investee.
- Which one of the following is the least likely reason a company may acquire an ownership interest in another company? Select one: a.To benefit form an overvaluing of assets in the investee company b. To oust an inefficient management team c. To take advantage of operating and/or cost synergies d. To exercise an active role in the business' activitiesUnder fair-value accounting for an equity investment, which of the following affects the income the investor recognizes from its ownership of the investee? The investee’s reported income adjusted for excess cost over book value amortizations. Changes in the fair value of the investor’s ownership shares of the investee. Intra-entity profits from upstream sales. Other comprehensive income reported by the investee.Discuss how naked debenture affects the usage of a business’s assets?
