Have coyote corporation and fox corporation reported right


Jackal Corporation declared of $4.00 per share on Sept. 15,2009. The date of record was Oct. 15 and the date of payment was Oct. 22. The stock exchange on which the Jackal Corporation stock is traded set an ex-dividend date of Oct.22. On Oct. 19, Coyote Corporation sold 1,000 shares of Jackal Corporation stock to Fox Corporation through the exchange for $75 per share. As required by exchange rules, Coyote signed an agreement that Fox was entitled to the dividend that was to be paid on Oct.22. Coyote Corporation, which had paid $45 per share for the Jackal Corporation stock in 2007, reported a long-term gain of $30,000[($75-$45)x1,000)] on its federal tax return. Fox Corporation reported dividend income of $4,000 ($4 per share x 1,000 shares) and took 70% dividends recieved deduction. Have Coyote Corporation and Fox Corporation reported these transactions properly?

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Accounting Basics: Have coyote corporation and fox corporation reported right
Reference No:- TGS098922

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