Lump Sum Distribution
Categories: Mutual Funds, Accounting, Tax
An investment fund has had half a dozen winners, which have been sold for combinations of cash, stock, and land interests. The people running the fund simply want to clean up their books, and give investors liquidity and/or direct ownership in the winnings gained by their investment in the fund. To answer these needs, the firm executes a lump sum distribution of cash, stock, and land interests in one... lump sum.