All of the stock of Hot Dog,Inc. ,a fast food franchise operating in 9 southeastern states,is owned by Welcome America,Inc. ,a § 501(c)(3) organization.The stock was received last year as an inheritance from Rob,the entrepreneur who founded the chain. During the current year,Hot Dog reports profits before taxes (this is the same as taxable income) of $8 million.Hot Dog distributes $5 million to its parent,and it retains the balance for expansion purposes.
a.What are the tax consequences to Hot Dog and to Welcome America?
a.change if Hot Dog distributes $8 million to Welcome America,rather than $5 million?
b.How would your answer in

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The Answer of All of the stock of Hot Dog,Inc. ,a fast food franchise operating in 9 southeastern states,is owned by Welcome America,Inc. ,a § 501(c)(3) organization.The stock was received last year as an inheritance from Rob,the entrepreneur who founded the chain. During the current year,Hot Dog reports profits before taxes (this is the same as taxable income) of $8 million.Hot Dog distributes $5 million to its parent,and it retains the balance for expansion purposes.
a.What are the tax consequences to Hot Dog and to Welcome America?
a.change if Hot Dog distributes $8 million to Welcome America,rather than $5 million?
b.How would your answer in

All of the Stock of Hot Dog,Inc