Vogel, Inc., an S corporation for five years, distributes a tract of land held as an...
Vogel, Inc., an S corporation for five years, distributes a tract of land held as an investment to Jamari, its majority shareholder. The land was purchased for $68,400 ten years ago and is currently worth $171,000.
If an amount is zero, enter, "0".
a. As a result of the distribution, what is Vogel's recognized capital gain? How much is reported as a distribution to shareholders?
Vogel recognizes a capital gain of $ which is reported on Schedule K, and a proportionate share of it passes through to the shareholders . Jamari would take a $ basis in the land.
b. What is the net effect of the distribution on Vogel's AAA?
There is a net decrease of $ on Vogel's AAA.
c. Assume instead that the land had been purchased for $171,000 and was currently worth $68,400. How much would Vogel recognize as a loss? What would be the net effect on Vogel's AAA? What would be Jamari's basis in the land?
Vogel recognizes a loss $ and the net effect on Vogel's AAA is a decrease of $. Jamari would take a $ basis in the land.
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Exercise 12-17 (LO. 7)
Vogel, Inc., an S corporation for five years, distributes a tract of land held as an investment to Jamari, its majority shareholder. The land was purchased for $45,000 ten years ago and is currently worth $120,000.
If an amount is zero, enter, "0".
a. As a result of the distribution, what is Vogel's recognized capital gain? How much is reported as a distribution to shareholders?
Add Answer to:
Vogel, Inc., an S corporation for five years, distributes a
tract of land held as an...
Question: Please Answer All of Part C with details! "Vogel recognizes a loss $0 and the net effect on Vogel's AAA is a...
Question: Please Answer All of
Part C with details!
"Vogel recognizes a loss $0 and the net effect on Vogel's AAA is
a decrease of $_____. Jamari would take a $150,000 basis in the
land."
Exercise 12-21 (Algorithmic) (LO. 7) Vogel, Inc., an S corporation for five years, distributes a tract of land held as an investment to Jamari, its majority shareholder. The land was purchased for $150,000 ten years ago and is currently worth $375,000. If an amount is...
Turnip, Inc,. an S corporation, distributes a tract of land held as an investment (FMV=$82,000, basis=$22,000)...
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2. Green, Inc., a C corporation, distributes a tract of land held as an investment (FMV S500,000,...
Please show your work.
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Exercise 13-4 (LO. 5) Fargo Corporation holds $5,000,000 in accumulated E & P. It distributes to...
Exercise 13-4 (LO. 5) Fargo Corporation holds $5,000,000 in accumulated E & P. It distributes to Leilei, one of its shareholders, land worth $310,000; basis of the land to Fargo is $260,000. Determine the Federal income tax consequences of the distribution to Fargo. of $ 0 x . The net decrease to Fargo's E & P is $ 0 x . The Fargo Corporation recognizes a gain shareholder has dividend income of $ ox
Problem 11-35 (LO. 3) Jamie's basis in her partnership interest is $52,000. In a proportionate distribution...
Problem 11-35 (LO. 3) Jamie's basis in her partnership interest is $52,000. In a proportionate distribution in liquidation of the partnership, Jamie receives $2,000 cash and two parcels of land with bases of $10,000 and $18,000, respectively, each to the partnership. The partnership holds both parcels of land for investment, and the parcels have fair market values of $20,000 each. If there is no gain or loss or if an amount is zero, enter"0". a. How much gain or loss,...
In the current year, Mick Hank, and Lulu form Hades Corporation Mick contributes land (a capital...
In the current year, Mick Hank, and Lulu form Hades Corporation Mick contributes land (a capital asset) having a $125.000 FMV in exchange for 145 shares of Hades stock. He purchased the land three years ago for $140,000. Hank contributes machinery (Sec 1231 property purchased four years ago) having a $130,000 adjusted basis and a $75,000 FMV in exchange for 105 shares of Hades stock. Lulu contributes services worth $50,000 in exchange for 40 shares of Hades stock Read the...
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...
68 Carl transfers land to Cardinal Corporation for 90% of the note payable to Carl in...
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Lilah and Juliet form a corporation (LJ Inc) Lilah contributes land ( a capital asset) with...
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Six years ago, Donna purchased land as an investment. The land cost $150,000 and is now...
Six years ago, Donna purchased land as an investment. The land cost $150,000 and is now worth $480,000. Donna plans to transfer the land to Development Corporation, which will subdivide it and sell individual tracts. Development's income on the land sales will be ordinary in character. Read the requirements Requirement a. What are the tax consequences of the asset transfer and land sales if Donna contributes the land to Development in exchange for all its stock? Donna recognizes no gain...
Question: Please Answer All of
Part C with details!
"Vogel recognizes a loss $0 and the net effect on Vogel's AAA is
a decrease of $_____. Jamari would take a $150,000 basis in the
land."
Exercise 12-21 (Algorithmic) (LO. 7) Vogel, Inc., an S corporation for five years, distributes a tract of land held as an investment to Jamari, its majority shareholder. The land was purchased for $150,000 ten years ago and is currently worth $375,000. If an amount is...
Please show your work.
2. Green, Inc., a C corporation, distributes a tract of land held as an investment (FMV S500,000, basis $220,000) and its mortgage of $550,000 to Susan in return for 50 of her shares at the end of the year. Green, Inc. has a current E&P of $190,000 for the year, and started the year an accumulated E & P of $60,000. Green's marginal tax rate is 21%. Susan has an individual marginal tax rate of 33%...
Exercise 13-4 (LO. 5) Fargo Corporation holds $5,000,000 in accumulated E & P. It distributes to Leilei, one of its shareholders, land worth $310,000; basis of the land to Fargo is $260,000. Determine the Federal income tax consequences of the distribution to Fargo. of $ 0 x . The net decrease to Fargo's E & P is $ 0 x . The Fargo Corporation recognizes a gain shareholder has dividend income of $ ox
Problem 11-35 (LO. 3) Jamie's basis in her partnership interest is $52,000. In a proportionate distribution in liquidation of the partnership, Jamie receives $2,000 cash and two parcels of land with bases of $10,000 and $18,000, respectively, each to the partnership. The partnership holds both parcels of land for investment, and the parcels have fair market values of $20,000 each. If there is no gain or loss or if an amount is zero, enter"0". a. How much gain or loss,...
In the current year, Mick Hank, and Lulu form Hades Corporation Mick contributes land (a capital asset) having a $125.000 FMV in exchange for 145 shares of Hades stock. He purchased the land three years ago for $140,000. Hank contributes machinery (Sec 1231 property purchased four years ago) having a $130,000 adjusted basis and a $75,000 FMV in exchange for 105 shares of Hades stock. Lulu contributes services worth $50,000 in exchange for 40 shares of Hades stock Read the...
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...
68 Carl transfers land to Cardinal Corporation for 90% of the note payable to Carl in the amount of $40,000 and the assumption by Cardina land in the amount of $100,000. The land, which has a basis to a. Carl will have a recognized gain on the transfer of $90,000 b. Carl will have a recognized gain on the transfer of $30,000 C. Cardinal Corporation will have a basis of $70,000 in the land transferred by Carl d. Cardinal Corporation...
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Six years ago, Donna purchased land as an investment. The land cost $150,000 and is now worth $480,000. Donna plans to transfer the land to Development Corporation, which will subdivide it and sell individual tracts. Development's income on the land sales will be ordinary in character. Read the requirements Requirement a. What are the tax consequences of the asset transfer and land sales if Donna contributes the land to Development in exchange for all its stock? Donna recognizes no gain...
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