Homework Answers
In the given scenario, Bronco holds 80% interest in Mustang stock. The IRS provisions put that when interest is greater than 50%, exchange can be tax deferred. As a result of such interest stake, Bronco shall take basis in land equal to Mustang’s basis in the land of $ 100,000.
Hence, the correct option is a. no gain recognized and basis in the land of $ 100,000
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Mustang Company was completely liquidated. In the exchange for its 80 percent interest, Bronco Corporation received...
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete...
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $637.500. The corporation's basis in the Tea Company stock was $302.500. The land had a basis to Tea Company of $672,500. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives? Multiple Choice o $335.000 gain...
19. Geranova Corporation is liquidated, with Vlad receiving $7,500 in money, other property having a $5,000...
19. Geranova Corporation is liquidated, with Vlad receiving $7,500 in money, other property having a $5,000 FMV, and a $2,000 mortgage on the property. Vlad’s basis in his Geranova Co. stock is $7,000. Upon liquidation, Vlad must recognize a gain of A) 2,000. B) $3,500. C) $5,000. D) $12,500. 20. Illinois Corporation is undergoing a complete liquidation and distributes land to Maria, one of its shareholders, in exchange for all of Maria's stock. The land has a basis of $300,000...
Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a...
Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a Type A merger. In exchange, she received stock in Marketing with a fair market value of $532,500 plus $532.500 in cash. Celeste's tax basis in the Supply Chain stock was $1.455,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives? Multiple Choice a $390,000 loss recognized and a basis In Marketing stock...
can you do it with more details Jalen transferred his 10 percent interest to Wolverine Company...
can you do it with more details
Jalen transferred his 10 percent interest to Wolverine Company as part of a complete liquidation of the company. In the exchange, he received land with a fair market value of $100,000. Jalen's basis in the Wolverine stock was $80,000. The land had a basis to Wolverine Company of $50,000. What amount of gain does Jalen recognize in the exchange and what is his basis in the land he receives?
Jalen transferred his 10...
25. HolyCow Corporation is liquidated, with Sneha receiving $4,000 in money and other property having a...
25. HolyCow Corporation is liquidated, with Sneha receiving $4,000 in money and other property having a $7,000 FMV. Sneha's basis in his HolyCow stock is $6,000. Upon liquidation, Sneha must recognize a gain of A) 0. B) $5,000. C) $8,000. D) $11,000. 26. Identify which of the following statements is true. A) A liquidating distribution of property other than a disqualified property that is made ratably to all shareholders (based on their stockholdings) will permit the recognition of loss on...
22. Under a plan of complete liquidation, Cain Corporation distributes land (not a property) with an...
22. Under a plan of complete liquidation, Cain Corporation distributes land (not a property) with an adjusted basis of $410,000 and an FMV of $300,000 for all Gary's stock. Gary's basis in his 10% interest in the Cain stock is $250.000. Find Gary's basis in the land and Cain Corporation's recognized gain or loss. A) Recognized Gain/Loss $110,000 loss Recognized Gain/Loss $110,000 loss Basis $300,000 B) Basis $250,000 C) Basis $300,000 D) Basis $250,000 Recognized Gain/Loss SO Recognized Gain/Loss SO...
Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in...
Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital’s balance sheet on the day Dave received his capital interest appears below: Basis Fair Market Value Assets: Cash $ 210,000 $ 210,000 Investments 100,000 126,000 Land 290,000 420,000 Totals $ 600,000 $ 756,000 Liabilities and capital:...
Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type...
Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $532,500 plus $532,500 in cash. Simone's tax basis in the Purple stock was $287.000. What amount of gain does Simone recogn in the exchange and what is her basis in the Plum stock she receives? Multiple Choice $778,000 gain recognized and a basis In Plum stock of $1.065,000. O...
Jasmine Inc. and Den Company entered into an exchange of real property. Here is the information...
Jasmine Inc. and Den Company entered into an exchange of real property. Here is the information for the properties to be exchanged. Jasmine Den FMV $ 500,000 $ 530,000 Adjusted tax basis 410,000 283,000 Mortgage 70,000 100,000 Pursuant to the exchange, Jasmine assumed the mortgage on the Den property, and Den assumed the mortgage on the Jasmine property. Compute Den's gain recognized on the exchange and its tax basis in the property received from Jasmine. $100,000 gain recognized; $383,000 basis...
Julian transferred 100 percent of his stock in Lemon Company to Apricot Corporation in a Type...
Julian transferred 100 percent of his stock in Lemon Company to Apricot Corporation in a Type B stock-for stock exchange. In exchange, he received stock in Apricot with a fair market value of $425,000. Julian's tax basis in the Lemon stock was $850.000. What amount of loss does Julian recognize in the exchange and what is his basis in the Apricot stock he receives? Multiple Choice $425,000 loss recognized and a basis In Apricot stock of $425,000. No loss recognized...
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $637.500. The corporation's basis in the Tea Company stock was $302.500. The land had a basis to Tea Company of $672,500. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives? Multiple Choice o $335.000 gain...
Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a Type A merger. In exchange, she received stock in Marketing with a fair market value of $532,500 plus $532.500 in cash. Celeste's tax basis in the Supply Chain stock was $1.455,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives? Multiple Choice a $390,000 loss recognized and a basis In Marketing stock...
can you do it with more details
Jalen transferred his 10 percent interest to Wolverine Company as part of a complete liquidation of the company. In the exchange, he received land with a fair market value of $100,000. Jalen's basis in the Wolverine stock was $80,000. The land had a basis to Wolverine Company of $50,000. What amount of gain does Jalen recognize in the exchange and what is his basis in the land he receives?
Jalen transferred his 10...
22. Under a plan of complete liquidation, Cain Corporation distributes land (not a property) with an adjusted basis of $410,000 and an FMV of $300,000 for all Gary's stock. Gary's basis in his 10% interest in the Cain stock is $250.000. Find Gary's basis in the land and Cain Corporation's recognized gain or loss. A) Recognized Gain/Loss $110,000 loss Recognized Gain/Loss $110,000 loss Basis $300,000 B) Basis $250,000 C) Basis $300,000 D) Basis $250,000 Recognized Gain/Loss SO Recognized Gain/Loss SO...
Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $532,500 plus $532,500 in cash. Simone's tax basis in the Purple stock was $287.000. What amount of gain does Simone recogn in the exchange and what is her basis in the Plum stock she receives? Multiple Choice $778,000 gain recognized and a basis In Plum stock of $1.065,000. O...
Jasmine Inc. and Den Company entered into an exchange of real property. Here is the information for the properties to be exchanged. Jasmine Den FMV $ 500,000 $ 530,000 Adjusted tax basis 410,000 283,000 Mortgage 70,000 100,000 Pursuant to the exchange, Jasmine assumed the mortgage on the Den property, and Den assumed the mortgage on the Jasmine property. Compute Den's gain recognized on the exchange and its tax basis in the property received from Jasmine. $100,000 gain recognized; $383,000 basis...
Julian transferred 100 percent of his stock in Lemon Company to Apricot Corporation in a Type B stock-for stock exchange. In exchange, he received stock in Apricot with a fair market value of $425,000. Julian's tax basis in the Lemon stock was $850.000. What amount of loss does Julian recognize in the exchange and what is his basis in the Apricot stock he receives? Multiple Choice $425,000 loss recognized and a basis In Apricot stock of $425,000. No loss recognized...
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