Homework Answers
Question 2 10 pts Identify which of the following statements is true. Under the check-the-box regulations, an LLC t...
Question 2 10 pts Identify which of the following statements is true. Under the check-the-box regulations, an LLC that has one member owner) may be disregarded as an entity separate from its owner. All of the above are false. A new LLC that is owned by four members elects to be taxed under its default classification (as a partnership) in its first year of operations. The entity is prohibited from changing its tax classification at any time in the future....
6. R and J form an LLC, which is treated as a partnership for income tax...
6. R and J form an LLC, which is treated as a partnership for income tax purposes. R transfers cash of $200 to the LLC in return for a 50% ownership interest. J transfers land with a tax basis of $140 and a fair market value of $200 in return for a 50% ownership interest in the LLC. Four years later the LLC sells the land that was contributed by J. The selling price was $230. How is the LLC's...
1. R and J form an LLC, which is treated as a partnership for income tax...
1. R and J form an LLC, which is treated as a partnership for income tax purposes. R transfers cash of $500 to the LLC in return for a 50% ownership interest in the LLC. J transfers land with an adjusted basis of $380 and a fair market value of $500 in return for a 50% ownership interest in the LLC. a. What is R's amount realized? b. What is J's amount realized? c. What is R's gain/loss realized? d....
34. LO.3, 9, 14 Sam and Drew are equal partners in SD LLC formed on June 1 of the current year. S...
34. LO.3, 9, 14 Sam and Drew are equal partners in SD LLC formed on June 1 of the current year. Sam contributed land that he inherited from his uncle in 2012. Sam's uncle purchased the land in 1985 for $30,000. The land was worth $100,000 when Sam's uncle died. The fair market value of the land was $200,000 at the date it was contributed to the partnership. Drew has significant experience developing real estate. After the LLC is formed,...
Question 2 3.03 points Save Answer Identify which of the following statements is true. A corporation...
Question 2 3.03 points Save Answer Identify which of the following statements is true. A corporation must recognize a loss when transferring noncash boot property that has declined in value and its stock to a transferor as part of a Sec. 351 exchange Section 351 provides for nonrecognition of gain for the transferee corporation when it distributes appreciated and that is boot property to a shareholder The transferee corporation's holding period for assets acquired in an exchange meeting the Sec....
Three individuals, C, D, and E, form CDE LLC. CDE LLC does not “check the box”...
Three individuals, C, D, and E, form CDE LLC. CDE LLC does not “check the box” to become a corporation and therefore is treated as a partnership for tax purposes. (a) C contributes land, adjusted basis $70 fair market value $100 and cash of $20. D contributes inventory (in the hands of both D and CDE), adjusted basis $50 fair market value $120. E contributes services. In exchange, each partner receives a 1/3 interest in the LLC. What are the...
1. business model design and different forms of business entity (i.e. "C" Corp, "S" Corp. LLC,...
1. business model design and different forms of business entity (i.e. "C" Corp, "S" Corp. LLC, Partnership). 2. Demonstrate how to form a corporation in California.
Based only on the example provided, fil out the form below with the ordinary income and...
Based only on the example provided, fil out the form below with
the ordinary income and the three items that must be reported
separately
[6] For the current year, the Murray and Parker Partnership had book income of $100,000, which included the following: Long-term capital gain $7,000 Sec. 1231 loss (3.000) Dividends 200 Interest paid to partners for use of capital 12,000 The partners share profits and losses equally. What amount of partnership income (excluding all partnership items which must...
If you are not familiar with Taxes and Accounting please pass on this one: A LLC...
If you are not familiar with Taxes and Accounting please pass on this one: A LLC (limited liability company) is the fasted growing entity form used by both small and large businesses. S corporations continue to have the greatest number of tax filings every year. SOURCES: Treasury Regulation §301.7701-3 Entity Classification, including (b)(1), (c)(1), (c)(1)(v)(C) Revenue Procedure 2002-69 BOTH MAY BE FOUND WITH A GOOGLE SEARCH (e.g., Treasury Regulation 301.7701-3) REQUIRED – USE THE CITATIONS ABOVE TO ANSWER THESE QUESTIONS,...
Exercise 1-6 Distinguishing business organizations LO C4 Consider the following separate situations, identify each as being...
Exercise 1-6 Distinguishing business organizations LO C4 Consider the following separate situations, identify each as being a sole proprietorship, partnership, corporation, or limited liability company. Business Organization Description Lannister owns Wealth Management. The business is a separate legal entity and pays an additional business income tax. b. Harvey and Louis own NYC Law. Harvey and Louis are jointly liable for partnership debts. Physio Products does not pay income taxes and has one owner. The owner has unlimited liability for business...
Question 2 10 pts Identify which of the following statements is true. Under the check-the-box regulations, an LLC that has one member owner) may be disregarded as an entity separate from its owner. All of the above are false. A new LLC that is owned by four members elects to be taxed under its default classification (as a partnership) in its first year of operations. The entity is prohibited from changing its tax classification at any time in the future....
6. R and J form an LLC, which is treated as a partnership for income tax purposes. R transfers cash of $200 to the LLC in return for a 50% ownership interest. J transfers land with a tax basis of $140 and a fair market value of $200 in return for a 50% ownership interest in the LLC. Four years later the LLC sells the land that was contributed by J. The selling price was $230. How is the LLC's...
1. R and J form an LLC, which is treated as a partnership for income tax purposes. R transfers cash of $500 to the LLC in return for a 50% ownership interest in the LLC. J transfers land with an adjusted basis of $380 and a fair market value of $500 in return for a 50% ownership interest in the LLC. a. What is R's amount realized? b. What is J's amount realized? c. What is R's gain/loss realized? d....
34. LO.3, 9, 14 Sam and Drew are equal partners in SD LLC formed on June 1 of the current year. Sam contributed land that he inherited from his uncle in 2012. Sam's uncle purchased the land in 1985 for $30,000. The land was worth $100,000 when Sam's uncle died. The fair market value of the land was $200,000 at the date it was contributed to the partnership. Drew has significant experience developing real estate. After the LLC is formed,...
Question 2 3.03 points Save Answer Identify which of the following statements is true. A corporation must recognize a loss when transferring noncash boot property that has declined in value and its stock to a transferor as part of a Sec. 351 exchange Section 351 provides for nonrecognition of gain for the transferee corporation when it distributes appreciated and that is boot property to a shareholder The transferee corporation's holding period for assets acquired in an exchange meeting the Sec....
Based only on the example provided, fil out the form below with
the ordinary income and the three items that must be reported
separately
[6] For the current year, the Murray and Parker Partnership had book income of $100,000, which included the following: Long-term capital gain $7,000 Sec. 1231 loss (3.000) Dividends 200 Interest paid to partners for use of capital 12,000 The partners share profits and losses equally. What amount of partnership income (excluding all partnership items which must...
Exercise 1-6 Distinguishing business organizations LO C4 Consider the following separate situations, identify each as being a sole proprietorship, partnership, corporation, or limited liability company. Business Organization Description Lannister owns Wealth Management. The business is a separate legal entity and pays an additional business income tax. b. Harvey and Louis own NYC Law. Harvey and Louis are jointly liable for partnership debts. Physio Products does not pay income taxes and has one owner. The owner has unlimited liability for business...
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