(Stock repurchase and taxes) The Barryman Drilling Company is planning on repurchasing $1.08 million worth of the company's 450,000 shares of stock, which is currently trading at a price of $10.83 per share. Stan Barryman is the founder of the company and still holds 19,000 shares of company stock that he originally purchased for $8.32 per share. If Stan decides to sell 2,100 of his shares for $10.83 a share, what will be his after-tax proceeds where capital gains are taxed at 15 percent? Stan's after-tax proceeds from the sale are $. (Round to the nearest dollar.)
(Stock repurchase and taxes) The Barryman Drilling Company is planning on repurchasing $1.08 million worth of the company's 450,000 shares of stock, which is currently trading at a price of $10.83 per share. Stan Barryman is the founder of the company and still holds 19,000 shares of company stock that he originally purchased for $8.32 per share. If Stan decides to sell 2,100 of his shares for $10.83 a share, what will be his after-tax proceeds where capital gains are taxed at 15 percent? Stan's after-tax proceeds from the sale are $. (Round to the nearest dollar.)
Chapter7: Corporations: Reorganizations
Section: Chapter Questions
Problem 44P
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Transcribed Image Text:(Stock repurchase and taxes) The Barryman Drilling Company is planning on repurchasing $1.08 million worth of the company's 450,000 shares of stock, which is currently trading at a price of $10.83 per share.
Stan Barryman is the founder of the company and still holds 19,000 shares of company stock that he originally purchased for $8.32 per share. If Stan decides to sell 2,100 of his shares for $10.83 a share, what will be
his after-tax proceeds where capital gains are taxed at 15 percent?
Stan's after-tax proceeds from the sale are $. (Round to the nearest dollar.)
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