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Rachel owns 100% of the stock of Cardinal Corporation. In the current year Rachel transfers an...
Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $20,000...
Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $20,000 plus a note payable to Carl in the amount of $40,000 and the assumption by Cardinal Corporation of a mortgage on the land in the amount of $100,000. The land, which has a basis to Carl of $70,000, is worth $160,000. a. Cardinal Corporation will have a basis of $160,000 in the land transferred by Carl. Ob. Carl will have a recognized gain on...
68 Carl transfers land to Cardinal Corporation for 90% of the note payable to Carl in...
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...
Jane transfers property (basis of $180,000 and fair market value of $500,000) to Green Corporation for...
Jane transfers property (basis of $180,000 and fair market value of $500,000) to Green Corporation for 80% of its stock (worth $425,000) and a long-term note (worth $75,000) executed by Green Corporation and made payable to Jane. As a result of the transfer a. Jane recognizes no gain. b. Jane recognizes a gain of $270,000 c. Jane recognizes a gain of $320,000. d. Jane recognizes a gain of $75,000 De. None of these choices are correct.
Krystin transfers property worth $200,000 (basis of $190,000) to Pierce Corporation for 90% of the stock...
Krystin transfers property worth $200,000 (basis of $190,000) to Pierce Corporation for 90% of the stock in Pierce Corporation (fair market value of $180,000) and receives $20,000 cash. Krystin recognizes gain on the transfer of: o $10,000 o$0 o $20,000 O $180,000
Eileen transfers property worth $200,000 (basis of $190,000) to Goldfinch Corporation. In return, she receives 80%...
Eileen transfers property worth $200,000 (basis of $190,000) to Goldfinch Corporation. In return, she receives 80% of the stock in Goldfinch Corporation (fair market value of $180,000) and a long-term note (fair market value of $20,000) executed by Goldfinch and made payable to Eileen. Eileen recognizes gain on the transfer of: a. $0. b. $10,000. c. $20,000. d. $190,000. e. None of the above.
Cadence transfers property worth $500,000, basis of $100,000, to Alpha Corporation for 80% of the stock...
Cadence transfers property worth $500,000, basis of $100,000, to Alpha Corporation for 80% of the stock in Alpha, worth $400,000, and a long-term note, executed by Alpha Corporation and made payable to Cadence, worth $100,000. Cadence recognizes a gain of $100,000 on the transfer. None of the above Cadence recognizes a gain of $400,000 on the transfer. Cadence recognizes no gain on the transfer. Cadence recognizes a gain of $300,000 on the transfer.
Jay owns 80% of Crystal Corporation stock. He transfers a business automobile to Crystal in exchange...
Jay owns 80% of Crystal Corporation stock. He transfers a business automobile to Crystal in exchange for additional Crystal stock worth $12,000 and Crystal's assumption of both his $2,500 automobile debt and his $5,500 education loan. The automobile originally cost Jay $22,000 and, on the transfer date, has a $10,500 adjusted basis and a $20,000 FMV. Read the requirements. Requirement a. What are the amount and character of Jay's recognized gain or loss? Jay realizes a C D and recognizes...
Erica transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for...
Erica transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for all of Robin's stock, worth $300,000, and a 10-year note. The note was executed by Robin and made payable to Erica in the amount of $200,000. As a result of the transfer: a. Erica recognizes gain of $400,000. b. Robin Corporation has a basis of $100,000 in the land. c. Robin Corporation has a basis of $300,000 in the land. d. Erica does not...
Jordan owns 80% of Ruby Corporation stock. He transfers a business automobile to Ruby in exchange...
Jordan owns 80% of Ruby Corporation stock. He transfers a business automobile to Ruby in exchange for additional Ruby stock worth $12,000 and Ruby's assumption of both his $3,500 automobile debt and his $1,500 education loan. The automobile originally cost Jordan $22,000 and, on the transfer date, has a $7,500 adjusted basis and a $17,000 FMV Read the requirements. Requirement a. What are the amount and character of Jordan's recognized gain or loss? Jordan realizes a D and recognizes a...
Gabriella and Juanita form Luster Corporation. Gabriella transfers cash of $50,000 for 50 shares of stock,...
Gabriella and Juanita form Luster Corporation. Gabriella transfers cash of $50,000 for 50 shares of stock, and Juanita transfers information concerning a proprietary process (basis of zero and fair market value of $50,000) for 50 shares of stock. a. Juanita must recognize gain of $50,000 b. The transfers to Luster are fully taxable to both Gabriella and Juanita. C. Because Juanita is required to recognize gain on the transfer, Gabriella also must recognize gain. d. Neither Gabriella nor Juanita will...
Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $20,000 plus a note payable to Carl in the amount of $40,000 and the assumption by Cardinal Corporation of a mortgage on the land in the amount of $100,000. The land, which has a basis to Carl of $70,000, is worth $160,000. a. Cardinal Corporation will have a basis of $160,000 in the land transferred by Carl. Ob. Carl will have a recognized gain on...
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...
Jane transfers property (basis of $180,000 and fair market value of $500,000) to Green Corporation for 80% of its stock (worth $425,000) and a long-term note (worth $75,000) executed by Green Corporation and made payable to Jane. As a result of the transfer a. Jane recognizes no gain. b. Jane recognizes a gain of $270,000 c. Jane recognizes a gain of $320,000. d. Jane recognizes a gain of $75,000 De. None of these choices are correct.
Krystin transfers property worth $200,000 (basis of $190,000) to Pierce Corporation for 90% of the stock in Pierce Corporation (fair market value of $180,000) and receives $20,000 cash. Krystin recognizes gain on the transfer of: o $10,000 o$0 o $20,000 O $180,000
Jay owns 80% of Crystal Corporation stock. He transfers a business automobile to Crystal in exchange for additional Crystal stock worth $12,000 and Crystal's assumption of both his $2,500 automobile debt and his $5,500 education loan. The automobile originally cost Jay $22,000 and, on the transfer date, has a $10,500 adjusted basis and a $20,000 FMV. Read the requirements. Requirement a. What are the amount and character of Jay's recognized gain or loss? Jay realizes a C D and recognizes...
Erica transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for all of Robin's stock, worth $300,000, and a 10-year note. The note was executed by Robin and made payable to Erica in the amount of $200,000. As a result of the transfer: a. Erica recognizes gain of $400,000. b. Robin Corporation has a basis of $100,000 in the land. c. Robin Corporation has a basis of $300,000 in the land. d. Erica does not...
Jordan owns 80% of Ruby Corporation stock. He transfers a business automobile to Ruby in exchange for additional Ruby stock worth $12,000 and Ruby's assumption of both his $3,500 automobile debt and his $1,500 education loan. The automobile originally cost Jordan $22,000 and, on the transfer date, has a $7,500 adjusted basis and a $17,000 FMV Read the requirements. Requirement a. What are the amount and character of Jordan's recognized gain or loss? Jordan realizes a D and recognizes a...
Gabriella and Juanita form Luster Corporation. Gabriella transfers cash of $50,000 for 50 shares of stock, and Juanita transfers information concerning a proprietary process (basis of zero and fair market value of $50,000) for 50 shares of stock. a. Juanita must recognize gain of $50,000 b. The transfers to Luster are fully taxable to both Gabriella and Juanita. C. Because Juanita is required to recognize gain on the transfer, Gabriella also must recognize gain. d. Neither Gabriella nor Juanita will...
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