The following information was described in a note ofCanon Packing Co.“During August, Holland Products Corporationpurchased 311,003 shares of the Company’s commonstock which constitutes approximately 35% of thestock outstanding. Holland has since obtained representationon the Board of Directors.”“An affiliate of Holland Products Corporation actsas a food broker for Canon Packing in the greater NewYork City marketing area. The commissions for such servicesafter August amounted to approximately $20,000.”Why is this information disclosed?

The following information was described in a note ofCanon Packing Co.“During August, Holland Products Corporationpurchased 311,003 shares of the Company’s commonstock which constitutes approximately 35% of thestock outstanding. Holland has since obtained representationon the Board of Directors.”“An affiliate of Holland Products Corporation actsas a food broker for Canon Packing in the greater NewYork City marketing area. The commissions for such servicesafter August amounted to approximately $20,000.”Why is this information disclosed?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter22: S Corporations

Section: Chapter Questions

Problem 36P

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