Question: Barry Means and his spouse Mary want to transfer their
Barry Means and his spouse Mary want to transfer their one- third (1/ 3) stock interest in The Diamond Ridge Golf Course to a trust for the benefit of their two children. The couple’s CPA has advised that such a “gift” is a taxable event, the tax consequence of which can only be determined by valuing the company and their one- third (1/ 3) stock interest therein. You have been engaged to value the Meanses’ stock interest for the purpose of filing a gift tax return. Assume that the date of the gift is December 31, 2012. Since this valuation is for tax purposes, the factors outlined in Rev. Rul. 59– 60 apply. Identify these factors and discuss each within the context of this engagement scenario, using the factual information for The Diamond Ridge Golf Course provided in the chapter.
Answer to relevant QuestionsSuppose you have been engaged to value a retail clothing chain as of December 31, 2012. You have selected the capitalization of earnings method and determined that net cash flow is the appropriate mea-sure for expected ...Hellemn Candy is a small candy manufacturer located in Defiance, Ohio. Founded in 1912, the company offers a full line of candy products to the marketplace, including its popular HoHo lollipops, Christmas candy canes, and ...What is cybercrime, and how prevalent is it in the United States?Explain when the net worth method is appropriate and how it works.Identify and discuss three areas of disagreement related to the selection of a risk- free rate.
Post your question