Saevig Corp. Case Solution
The estate was bought by the citizen and afterwards transferred it to a family managed corporation in return for a get outside. When funds were received, the IRS treated them as dividends, whereas the individual and corporate citizens argued they were amounts paid to the corporation on the sale of a corporate asset of the individual citizen. The question is whether the initial transfer to the corporation was a contribution to capital (equity) or the development of a debtor/creditor relationship.
This is just an excerpt. This case is about FINANCE & ACCOUNTING
PUBLICATION DATE: March 11, 1999