Homework Answers
| In the Books of X Corporation | |||
| Profit and Loss Account (Loss) | Dr. | 20,000 | |
| To Installment Obligation (Mark) Account | 20,000 | ||
| Cash Account | Dr. | 20,000 | |
| Installment Obligation (Mark) Account | Dr. | 180,000 | |
| To Share Capital Account (Issued to Mark) | 200 | ||
| To Share Premium (Balancing Figure) | 199,800 | ||
| Cash Account | Dr. | 20,000 | |
| To Share Capital Account (Issued to Jain) | 20 | ||
| To Share Premium (Balancing Figure) | 19,980 | ||
| Note: Assuming face value of ear share is 10. |
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Mark and Jain form X corporation with the following consideration: Consideration Transferred Basis to FMV Number...
Problem #1 Mark and Jain form X corporation with the following consideration: Consideration Transferred Basis to...
Problem #1 Mark and Jain form X corporation with the following consideration: Consideration Transferred Basis to FMV Number of Shares Transferor Received From Mark Cash Installment Obligation 20,000 140,000 20,000 180,000 20 From Jain Services 20,000 Calculate Realized and recognized gain/loss, basis to each shareholder. Also calculate basis to X corporation for Installment Obligation.
Janice and Thom form the Conestoga Corporation with the following consideration: Consideration Transferred Basis to Transferor...
Janice and Thom form the Conestoga Corporation with the following consideration: Consideration Transferred Basis to Transferor Fair Market Value Number of Shares Issued From Janice— Cash $125,000 $125,000 Machinery 210,000 400,000 525 From Thom— Cash $200,000 $200,000 Building 390,000 280,000 Land 110,000 90,000 570 In the event the corporation is subject to the built-in loss adjustment, the alternative approach is not elected by the corporation and shareholder. Regarding these transactions, provide the following information: Thom's basis in the Conestoga Corporation...
Tom and Gail form Owl Corporation with the following consideration: Consideration Transferred Basis to Transferor Fair...
Tom and Gail form Owl Corporation with the following consideration: Consideration Transferred Basis to Transferor Fair Market Value Number of Shares Issued From Tom— Cash $50,000 $50,000 Installment note 240,000 350,000 40 From Gail— Inventory 60,000 50,000 Equipment 125,000 250,000 Patentable invention 15,000 300,000 60 The installment note has a face amount of $350,000 and was acquired last year from the sale of land held for investment purposes (adjusted basis of $240,000). Regarding these transactions, provide the following information: If...
Janice and Thom form the Conestoga Corporation with the following consideration: Consideration Transferred B...
Janice and Thom form the Conestoga Corporation with the following consideration: Consideration Transferred Basis to Transferor Fair Market Value Number of Shares Issued From Janice— Cash $125,000 $125,000 Machinery 210,000 400,000 525 From Thom— Cash $200,000 $200,000 Building 390,000 280,000 Land 110,000 90,000 570 In the event the corporation is subject to the built-in loss adjustment, the alternative approach is not elected by the corporation and shareholder. Regarding these transactions, provide the following information: If an amount is zero, enter...
Consideration Transferred Basis to Fair Market Number of Shares Issued Transferor Value From Amil- Cash $25,000...
Consideration Transferred Basis to Fair Market Number of Shares Issued Transferor Value From Amil- Cash $25,000 $25,000 Installment note 80,000 215,000 2,400 From Rebecca- Cash Building Land $60,000 300,000 31,000 $60,000 400,000 40,000 5,000 Hyde Corporation's basis in the installment note is a 1 Hyde Corporation's basis in the building is X. Its basis in the land is
Tom and Gail form Owl Corporation with the following consideration: Consideration Transferred Basis to Transferor Fair...
Tom and Gail form Owl Corporation with the following consideration: Consideration Transferred Basis to Transferor Fair Market Value Number of Shares Issued From Tom— Cash $50,000 $50,000 Installment note 240,000 350,000 40 From Gail— Inventory 60,000 50,000 Equipment 125,000 250,000 Patentable invention 15,000 300,000 60 The installment note has a face amount of $350,000 and was acquired last year from the sale of land held for investment purposes (adjusted basis of $240,000). Regarding these transactions, provide the following information: If...
PROBLEM 1: Jerry transfers two assets to a corporation as part of a Sec. 351 exchange....
PROBLEM 1: Jerry transfers two assets to a corporation as part of a Sec. 351 exchange. The first asset has an adjusted basis of $70,000 and an FMV of $50,000. The second asset has an adjusted basis of $70,000 and an FMV of $150,000. The FMV of the stock received is $180,000, and he also receives $20,000 cash. The realized and recognized gain on the second asset is A) $80,000 realized; $20,000 recognized. B) $80,000 realized; $15,000 recognized. C) $20,000...
Taxation - Code 351 Problem: Transfer to corporation controlled by transferor Please help me figure out...
Taxation - Code 351 Problem: Transfer to corporation controlled by transferor Please help me figure out the tax effects to both the shareholder and corporation. (What's each shareholder's recognized gain or loss, basis in their shares and the company's basis in the assets). All assets and liabilities were given during the incorporation. Shareholder A gave $100,000 in cash for 20% ownership/shares. Shareholder B gave a book binding equipment FMV $110,000, basis 30,000 and received $10,000 in cash plus 20% ownership/shares....
Consideration Transferred Number of Shares Issued Basis to Fair Market Value Transferor From Janice- Cash $125,000...
Consideration Transferred Number of Shares Issued Basis to Fair Market Value Transferor From Janice- Cash $125,000 $125,000 Machinery 210,000 400,000 525 From Thom- Cash Building Land $200,000 390,000 110,000 $200,000 280,000 90,000 570 e. Thom's basis in the Conestoga Corporation stock is s Conestoga Corporation's basis in the building is X. Its basis in the land is
Consideration Transferred Basis to Transferor Number of Shares Issued Fair Market Value From Ryan- Cash $820,000...
Consideration Transferred Basis to Transferor Number of Shares Issued Fair Market Value From Ryan- Cash $820,000 $820,000 " Notes receivable 235,000 290,000 1,110 From Kristen- Cash Patent Machinery $100,000 300,000 260,000 $100,000 500,000 200,000 800 Ryan's basis in the Carolina Corporation stock is Carolina Corporation's basis in the notes receivable is s Kristen's basis in the Carolina Corporation stock is s árolina Corporation's basis in the patent is X . Its basis in the machinery is
Problem #1 Mark and Jain form X corporation with the following consideration: Consideration Transferred Basis to FMV Number of Shares Transferor Received From Mark Cash Installment Obligation 20,000 140,000 20,000 180,000 20 From Jain Services 20,000 Calculate Realized and recognized gain/loss, basis to each shareholder. Also calculate basis to X corporation for Installment Obligation.
Consideration Transferred Basis to Fair Market Number of Shares Issued Transferor Value From Amil- Cash $25,000 $25,000 Installment note 80,000 215,000 2,400 From Rebecca- Cash Building Land $60,000 300,000 31,000 $60,000 400,000 40,000 5,000 Hyde Corporation's basis in the installment note is a 1 Hyde Corporation's basis in the building is X. Its basis in the land is
Consideration Transferred Number of Shares Issued Basis to Fair Market Value Transferor From Janice- Cash $125,000 $125,000 Machinery 210,000 400,000 525 From Thom- Cash Building Land $200,000 390,000 110,000 $200,000 280,000 90,000 570 e. Thom's basis in the Conestoga Corporation stock is s Conestoga Corporation's basis in the building is X. Its basis in the land is
Consideration Transferred Basis to Transferor Number of Shares Issued Fair Market Value From Ryan- Cash $820,000 $820,000 " Notes receivable 235,000 290,000 1,110 From Kristen- Cash Patent Machinery $100,000 300,000 260,000 $100,000 500,000 200,000 800 Ryan's basis in the Carolina Corporation stock is Carolina Corporation's basis in the notes receivable is s Kristen's basis in the Carolina Corporation stock is s árolina Corporation's basis in the patent is X . Its basis in the machinery is
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