Gavin and Floyd are partners in an e-learning company and each owns 50% of the company's 100
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Question:
Gavin and Floyd are partners in an e-learning company and each owns 50% of the company's 100 shares. They have implemented a cross-purchase buy-sell agreement funded by corporate-owned insurance. Which of the following outcomes can be expected if Gavin dies?
a. The insurance proceeds will be paid to Gavin's estate upon his death.
b. The company will receive the insurance proceeds which will be transferred to its CDA.
c. Gavin's 50 shares will be transferred to the company upon his death.
d. The company pays Gavin's estate for his shares with a promissory note.
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
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