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Swift Corporation distributes land (basis of $55,000 and fair market value of $120,000) to Sam and...

Swift Corporation distributes land (basis of $55,000 and fair market value of $120,000) to Sam and cash ($240,000) to Allison in exchange for part of their stock. Other shareholders do not redeem any of their stock. Sam surrenders shares. Comparative Forms of Doing Business of stock that have a basis of $25,000. Prior to the stock redemption, Sam owned 20% of the Swift stock, and after the redemption, he owns 15%. At the same time, Swift distributes cash to Allison, and she surrenders shares of stock with a basis of $40,000. Prior to the stock redemption, Allison owned 70% of the Swift stock, and after the redemption, she owns 60%. Determine the tax consequences to Swift, Sam, and Allison if Swift is:

a. A C corporation.

b. An S corporation.

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ANSWER Tax Conseguences to suif If c Cox Pozatiom Land is distibuted at appeciatel P2operty so Swift will veognize gain of 65000 120,00-55000 If S Corposation Suiftwill ecognize aim of 46Sooo ơn distribution of land to sam.But as uift is S Lonponation so丰65000 gain is taxable at Sareholder levcl So mo tax to be Paid by suift Tf any doubt+ flease Comment

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