Assignment:
1.Briefly (and simply) explain why a corporation cares whether a payment is classified as a dividend payment or compensation payment (for its tax purposes).
2. Briefly (and simply) explain why a corporate employee/owner cares whether a payment is classified as a dividend payment or compensation payment (for his/her tax purposes).
3. Find and refer to the case, at (87 AFTR 2d 2001-2075) , what Method of Accounting?
4. What was the issue related to IRC §§162 & 316 in this case?
5. Briefly explain how the Pepsi-Cola case affected the decision in this case on that issue.
6. Briefly list the three main conditions under §355 that allow a distributee to avoid the recognition of gain or loss on the distribution of stock of a controlledcorporation.
7. Refer to Rev. Rul. 77-11 for questions 2-5. What (not how much) were corporation X's assets immediately after the transfer to corporation Z?