# Viking corporation is owned equally by sven and his wife, olga, each of whom hold 100 shares in the

## This Post Has 3 Comments

1. krystalhurst97 says:

The Tax Consequence for Viking Corporation for redeeming Sven's 75 shares at $2,000 each is a reduction of$150,000 in the Viking's Earnings and Profit.

Explanation:

Viking Corporation redeemed 75 shares out of Sven's 100 shares in the company.This means that Sven's ownership in Viking has reduced to 25 shares.In order to redeem the 75 shares from Sven, Viking paid $2,000 per shareTotal Paid for the 75 share = 75 x$2,000= $150,000Since Vikings's Total Earnings and Profit is$500,000, The payment of $150,000 to redeem Sven's stock will:Reduce the Earnings and Profit for tax consequesnces=$500,000- $150,000=$350,000Summary, the Tax Consequence for Viking Corporation for redeeming Sven's 75 shares at $2,000 each is a reduction of$150,000 in the Viking's Earnings and Profit.

2. Expert says:

false! basically!

i hope i'm correct.

3. Expert says:

You need to give the options.