Unrelated parties Amy, Beth, Carla, and Delta Corporation each own 25 of the 100 outstanding shares of Axle Corporation stock. In a transaction that qualifies as a partial liquidation, Axle distributes 20000 cash to each shareholder in exchange for five Axle shares. Each redeemed share has a 1000 basis to the shareholder and a 4000 FMV. How does each shareholder treat the distribution for tax purposes? Treatment Amount Character
Amy
Beth
Carla
Delta Corporation
Treatment Option – Dividend Recognition or Sale of Stock
Character Option – Capital Gain, Dividend, Return of Capital
(All Shareholders, or Amy, or Beth, or Carla, Or Delta) are/is entitled to a(n) (?)% (capital loss or ordinary gain or dividends received deduction

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?