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Julian transferred 100 percent of his stock in Lemon Company to Apricot Corporation in a Type...
Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a...
Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a Type A merger. In exchange, she received stock in Marketing with a fair market value of $532,500 plus $532.500 in cash. Celeste's tax basis in the Supply Chain stock was $1.455,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives? Multiple Choice a $390,000 loss recognized and a basis In Marketing stock...
Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type...
Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $532,500 plus $532,500 in cash. Simone's tax basis in the Purple stock was $287.000. What amount of gain does Simone recogn in the exchange and what is her basis in the Plum stock she receives? Multiple Choice $778,000 gain recognized and a basis In Plum stock of $1.065,000. O...
Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a...
Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a Type A merger. In exchange, she received stock in Marketing with a fair market value of $580,000 plus $580,000 in cash. Celeste's tax basis in the Supply Chain stock was $1,385,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives? Multiple Choice $225,000 loss recognized and a basis in Marketing stock of...
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete...
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $637.500. The corporation's basis in the Tea Company stock was $302.500. The land had a basis to Tea Company of $672,500. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives? Multiple Choice o $335.000 gain...
Mustang Company was completely liquidated. In the exchange for its 80 percent interest, Bronco Corporation received...
Mustang Company was completely liquidated. In the exchange for its 80 percent interest, Bronco Corporation received and with a for market value of $500.000 Bronco's tax basis in the Mustang stock was $200,000. The land had a tax basis to Mustang Company of $100,000. What amount of gain does Bronco recognize in the exchange, if any, and what is its tax basis in the land it receives? Multiple Choice O No gain recognized and a basis in the land of...
Casey transfers property with a tax basis of $3,000 and a fair market value of $7.100...
Casey transfers property with a tax basis of $3,000 and a fair market value of $7.100 to a corporation in exchange for stock with a fair market value of $6,000 and $430 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $670 on the property transferred. Casey also incurred selling expenses of $562. What is the amount realized by Casey in the exchange? Multiple Choice О $7100 O O $6,538 O...
Rafael transfers the following assets to Crane Corporation in exchange for all of its stock. Assume...
Rafael transfers the following assets to Crane Corporation in exchange for all of its stock. Assume that neither Rafael nor Crane plans to make any special tax elections at the time of incorporation. Assets Rafael's Adjusted Basis Fair Market Value Inventory $60,000 $100,000 Equipment 150,000 105,000 Shelving 80,000 65,000 If an amount is zero, enter "O". Do not round any division in your computations. a. What is Rafael's recognized gain or loss? Rafael's realized of this amount, $ is $...
Problem 20-23 (LO. 1,4) Dove Corporation (E & P of $800,000) has 1,000 shares of stock...
Problem 20-23 (LO. 1,4) Dove Corporation (E & P of $800,000) has 1,000 shares of stock outstanding. The shares are owned as follows: Julia, 600 shares; Maxine (Julia's sister), 300 shares; and Janine (Julia's daughter), 100 shares. Dove Corporation owns land (basis of $300,000, fair market value of $260,000) that it purchased as an investment seven years ago. Dove distributes the land to Julia in exchange for all of her shares in the corporation. Julia had a basis of $275,000...
Problem 12-24 (LO. 2, 4) Rafael transfers the following assets to Crane Corporation in exchange for...
Problem 12-24 (LO. 2, 4) Rafael transfers the following assets to Crane Corporation in exchange for all of its stock. Assume that neither Rafael nor Crane plans to make any special tax elections at the time of incorporation. Assets Rafael's Adjusted Basis Fair Market Value Inventory $60,000 $100,000 Equipment 150,000 105,000 65,000 Shelving 80,000 If an amount is zero, enter "O". Do not round any division in your computations. a. What is Rafael's recognized gain or loss? Rafael's realized loss...
5. Ramon, a single taxpayer, has adjusted gross income for 2012 of $ 98,000 and his...
5. Ramon, a single taxpayer, has adjusted gross income for 2012 of $ 98,000 and his itemized deductions total $ 19,000. What taxable income will Ramon show in 2012? a. $ 73,550 b. $ 75,200 c. $ 92,550 d. $ 89,050 e. $ 70,050 6. Margaret and her sister support their mother and together provide 85 percent of their mother’s support. If Margaret provides 40% of her mother’s support: a. Her sister is the only one who can claim their...
Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a Type A merger. In exchange, she received stock in Marketing with a fair market value of $532,500 plus $532.500 in cash. Celeste's tax basis in the Supply Chain stock was $1.455,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives? Multiple Choice a $390,000 loss recognized and a basis In Marketing stock...
Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $532,500 plus $532,500 in cash. Simone's tax basis in the Purple stock was $287.000. What amount of gain does Simone recogn in the exchange and what is her basis in the Plum stock she receives? Multiple Choice $778,000 gain recognized and a basis In Plum stock of $1.065,000. O...
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $637.500. The corporation's basis in the Tea Company stock was $302.500. The land had a basis to Tea Company of $672,500. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives? Multiple Choice o $335.000 gain...
Mustang Company was completely liquidated. In the exchange for its 80 percent interest, Bronco Corporation received and with a for market value of $500.000 Bronco's tax basis in the Mustang stock was $200,000. The land had a tax basis to Mustang Company of $100,000. What amount of gain does Bronco recognize in the exchange, if any, and what is its tax basis in the land it receives? Multiple Choice O No gain recognized and a basis in the land of...
Casey transfers property with a tax basis of $3,000 and a fair market value of $7.100 to a corporation in exchange for stock with a fair market value of $6,000 and $430 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $670 on the property transferred. Casey also incurred selling expenses of $562. What is the amount realized by Casey in the exchange? Multiple Choice О $7100 O O $6,538 O...
Rafael transfers the following assets to Crane Corporation in exchange for all of its stock. Assume that neither Rafael nor Crane plans to make any special tax elections at the time of incorporation. Assets Rafael's Adjusted Basis Fair Market Value Inventory $60,000 $100,000 Equipment 150,000 105,000 Shelving 80,000 65,000 If an amount is zero, enter "O". Do not round any division in your computations. a. What is Rafael's recognized gain or loss? Rafael's realized of this amount, $ is $...
Problem 20-23 (LO. 1,4) Dove Corporation (E & P of $800,000) has 1,000 shares of stock outstanding. The shares are owned as follows: Julia, 600 shares; Maxine (Julia's sister), 300 shares; and Janine (Julia's daughter), 100 shares. Dove Corporation owns land (basis of $300,000, fair market value of $260,000) that it purchased as an investment seven years ago. Dove distributes the land to Julia in exchange for all of her shares in the corporation. Julia had a basis of $275,000...
Problem 12-24 (LO. 2, 4) Rafael transfers the following assets to Crane Corporation in exchange for all of its stock. Assume that neither Rafael nor Crane plans to make any special tax elections at the time of incorporation. Assets Rafael's Adjusted Basis Fair Market Value Inventory $60,000 $100,000 Equipment 150,000 105,000 65,000 Shelving 80,000 If an amount is zero, enter "O". Do not round any division in your computations. a. What is Rafael's recognized gain or loss? Rafael's realized loss...
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