Briefly (and simply) explain why a corporate employee/owner cares whether a payment is classified as a dividend payment or compensation payment (for his/her tax purposes).

Tax Research 5,7 1. Briefly (and simply) explain why a corporation cares whether a payment is classified as a dividend payment or compensation payment (for its tax purposes). 2. Briefly (and simply) explain why a corporate employee/owner cares whether a payment is classified as a dividend payment or compensation payment (for his/her tax purposes). 3. Find and refer to the case, at (87 AFTR 2d 2001-2075) , what Method of Accounting? 4. What was the issue related to IRC §§162 & 316 in this case? 5. Briefly explain how the Pepsi-Cola case affected the decision in this case on that issue. 6. Briefly list the three main conditions under §355 that allow a distributee to avoid the recognition of gain or loss on the distribution of stock of a controlled corporation. 7. Refer to Rev. Rul. 77-11 for questions 2-5. What (not how much) were corporation X’s assets immediately after the transfer to corporation Z? 8. What (not how much) were corporation Y’s assets immediately after the transfer to corporation Z? 9. How did the assets owned by individuals A and B change as a result of the entire transaction? 10. What was Z’s basis in the assets that it received from X and Y?