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 and 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 and 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