i) ii) iii) i) 5) How should your answer to (4) change if you also assume...
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i) ii) iii) i) 5) How should your answer to (4) change if you also assume that iv) ii) If the trial proceeds, it is expected to last less than a month and to result in one of two possible outcomes in terms of the price per share established in court: the $273,000 being claimed by the plaintiffs, or the $55400 being defended by Herbert Kohler. Kohler estimates the probabilities of these two outcomes at 30% and 70% respectively. The inheritance tax owed on Frederic Kohler's estate was 50.2% of his holdings in Kohler Co. (equivalent to 489 shares out of the 975 he owned) The taxes paid by the estate amounted to $27 million (489 shares at 55,400 each) Were the settlement or the trial to result in a revised share price in excess of $55,400, the IRS would likely demand a similar valuation for its claim of Frederic's estate Herbert Kohler estimates the probability of IRS's demand at 100% if he proceeds to trial and 50% if he settles. i) ii) iii) i) 5) How should your answer to (4) change if you also assume that iv) ii) If the trial proceeds, it is expected to last less than a month and to result in one of two possible outcomes in terms of the price per share established in court: the $273,000 being claimed by the plaintiffs, or the $55400 being defended by Herbert Kohler. Kohler estimates the probabilities of these two outcomes at 30% and 70% respectively. The inheritance tax owed on Frederic Kohler's estate was 50.2% of his holdings in Kohler Co. (equivalent to 489 shares out of the 975 he owned) The taxes paid by the estate amounted to $27 million (489 shares at 55,400 each) Were the settlement or the trial to result in a revised share price in excess of $55,400, the IRS would likely demand a similar valuation for its claim of Frederic's estate Herbert Kohler estimates the probability of IRS's demand at 100% if he proceeds to trial and 50% if he settles. i) ii) iii) i) 5) How should your answer to (4) change if you also assume that iv) ii) If the trial proceeds, it is expected to last less than a month and to result in one of two possible outcomes in terms of the price per share established in court: the $273,000 being claimed by the plaintiffs, or the $55400 being defended by Herbert Kohler. Kohler estimates the probabilities of these two outcomes at 30% and 70% respectively. The inheritance tax owed on Frederic Kohler's estate was 50.2% of his holdings in Kohler Co. (equivalent to 489 shares out of the 975 he owned) The taxes paid by the estate amounted to $27 million (489 shares at 55,400 each) Were the settlement or the trial to result in a revised share price in excess of $55,400, the IRS would likely demand a similar valuation for its claim of Frederic's estate Herbert Kohler estimates the probability of IRS's demand at 100% if he proceeds to trial and 50% if he settles. i) ii) iii) i) 5) How should your answer to (4) change if you also assume that iv) ii) If the trial proceeds, it is expected to last less than a month and to result in one of two possible outcomes in terms of the price per share established in court: the $273,000 being claimed by the plaintiffs, or the $55400 being defended by Herbert Kohler. Kohler estimates the probabilities of these two outcomes at 30% and 70% respectively. The inheritance tax owed on Frederic Kohler's estate was 50.2% of his holdings in Kohler Co. (equivalent to 489 shares out of the 975 he owned) The taxes paid by the estate amounted to $27 million (489 shares at 55,400 each) Were the settlement or the trial to result in a revised share price in excess of $55,400, the IRS would likely demand a similar valuation for its claim of Frederic's estate Herbert Kohler estimates the probability of IRS's demand at 100% if he proceeds to trial and 50% if he settles.
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Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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