ZuoTi.Pro
Question

Tax Accounting

Questions 36-43 are based on the following information:

S Co. is owned 80% by its parent P co., 10% by E and 10% by F. S Co . is completely liquidated pursuant to Code § 332 as a parent/subsidiary liquidation. S Co. distributes its assets as follows:

   TO   SHAREHOLDER'S S CO. STOCK BASISAMOUNT

P Co.$10,000Inventory:FMV   $48,000



BASIS   $20,000
E$4,000Capital Asset:FMV   $6,000



BASIS   $8,000
F$4,000Capital AssetFMV   $6,000



BASIS    $3,000

 

Flag question: Question 36

Question 362 pts

S Co.'s recognized gain or loss on the distribution to P Co. is

Group of answer choices

$28,000 capital gain

0

$28,000 ordinary income

None of these.

 

Flag question: Question 37

Question 372 pts

S Co.'s recognized gain or loss on the distribution to E is

Group of answer choices

0

<$2,000> capital loss

$2,000 capital gain

None of these.

 

Flag question: Question 38

Question 382 pts

S Co.'s recognized gain or loss on the distribution to F is

Group of answer choices

$2,000 capital gain

$3,000 capital gain

0

None of these.

 

Flag question: Question 39

Question 392 pts

The gain or loss recognized by P Co. is 

Group of answer choices

$38,000 capital gain

$38,000 ordinary income

0

None of these.

 

Flag question: Question 40

Question 402 pts

The gain or loss recognized by E is

Group of answer choices

$2,000 capital gain

$4,000 capital gain

0

None of these.

 

Flag question: Question 41

Question 412 pts

The gain or loss recognized by F is

Group of answer choices

0

$2,000 capital gain

$1,000 capital gain

None of these.

 

Flag question: Question 42

Question 422 pts

P Co.'s basis in the inventory is

Group of answer choices

$20,000

$48,000

$10,000

None of these.

 

Flag question: Question 43

Question 432 pts

E's basis in the capital asset is

Group of answer choices

$4,000

$8,000

$6,000

None of these.


accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Tax Accounting
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Tax Accounting

    Questions 25-35 are based on the following information:Z Co. adopts a plan of complete liquidation and makes the following pro rata distributions to its shareholders (assume all are individuals and each has a $2,000 basis in the Z Co. stock):ACash   $40,000BCapital AssetFMV                $30,000BASIS   $10,000MORTGAGE   $20,000CCapital AssetFMV   $50,000BASIS   $10,000MORTGAGE   $80,000DCapital AssetFMV   $1,400BASIS   $3,000(Assume that Z Co. acquired the property distributed to D in a Code § 351 transfer 6 months before adopting a plan of liquidation when the...

  • Tax Accounting

    Questions 1-15 are based on the following information:Five individuals, A, B, C, D, and E, formed X Co. After making the following transfers to X Co., they own 100% of X Co:A$40,000 cash and $15,000 worth of servicesBProperty:FMV   $50,000BASIS   $50,000MORTGAGE   $30,000CProperty:FMV   $80,000BASIS   $20,000MORTGAGE   $30,000DProperty:FMV   $26,000BASIS   $56,000EProperty:FMV   $73,000 (capital asset)BASIS   $30,000MORTGAGE   $3,000  (Depreciation recapture potential of $7,000)In return, they receive the following from X Co:A$55,000 StockB$15,000 Stock + $5,000 CashC$42,000 Stock...

  • Tax Accounting

    Questions 17-20 are based on the following information:On 1/1/x2, P Co. had accumulated E&P totaling $10,000. During 20x2, P Co. made the following distributions to its shareholders:J - $25,000 cash on 9/7/x2M - Property (FMV $75,000; Basis $65,000) on 11/3/x2J's basis in his P Co. stock is $10,000.M's basis in his P Co. stock is $30,000.P Co. had current E&P from operations in 20x2 totaling $30,000.  Flag question: Question 17Question 172 ptsP Co.s recognized gain or loss on the distribution is Group of answer choices0None...

  • tax accounting mba

    Question 472 ptsX Co. had the following income and expenses:Gross income from operations                                 $400,000Expenses from operations                                           $410,000Dividends received from a domestic corporation (13%) owned by X Co.)                    $30,000Capital loss carryback          ...

  • Tax Accounting

    Questions 21-24 are based on the following information:On 8/24/x5, Hunter and 6 individuals organized M Corporation. Each received the following shares of M Corp. voting stock:Hunter's father2,000Hunter's mother2,000Hunter3,000Hunter's sister9,000Hunter's grandfather10,000Hunter's friend, Bill13,000Hunter's wife1,000During the current tax year, M Corp. redeemed 2,000 of Hunter's shares for $30,000, 1,500 of his father's shares, 1,500 of his mother's shares, 3,000 of his sister's shares, and 12,000 of Bill's shares.Hunter had a basis in the redeemed M Corp. stock of $4,000. Flag question: Question 21Question 212 ptsBefore the redemption,...

  • tax accounting

    Questions 44-46 are based on the following information:X Co. donated a machine worth $300,000 to a valid charity. If X Co. had sold the machine, it would have had a $40,000 short-term capital gain. During the year, X Co.had the following items:Gross income of $500,000Deductible operational expenses of $130,000NOL carryforward of $70,000Capital loss carryback of $60,000Dividends received deduction of $30,000 Flag question: Question 44Question 442 ptsX Co.'s current charitable contribution amount isGroup of answer choicesNone of these.$260,000$40,000$300,000 Flag question: Question 45Question 452 ptsX Co.'s current...

  • Ralph gives his daughter, Angela, stock (basis of $8,000; fair market value of $6,000). No gift...

    Ralph gives his daughter, Angela, stock (basis of $8,000; fair market value of $6,000). No gift tax results. If Angela subsequently sells the stock for $10,000, what is her recognized gain or loss? Group of answer choices None of the above $0 $4,000 $10,000 $2,000

  • 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...

  • Tax Accounting

    Question 162 ptsDuring the tax year, Z Co. had the following items:Gross income from operations $90,000Dividends received$50,000Dividends received deduction $25,000Deductible ordinary business expenses$30,000Contributions to capital$10,000Federal income tax refund$40,000Tax-exempt interest income$25,000Charitable contributions $3,000Straight line depreciation$7,000Accelerated depreciation in excess of straight line$3,200Capital losses$70,000Capital loss carryovers$4,800Federal income taxes paid$15,000Net operating loss carryover$30,000Z Co.'s current E&P is Group of answer choicesNone of these.$80,000$100,000$90,000

  • 25. HolyCow Corporation is liquidated, with Sneha receiving $4,000 in money and other property having a...

    25. HolyCow Corporation is liquidated, with Sneha receiving $4,000 in money and other property having a $7,000 FMV. Sneha's basis in his HolyCow stock is $6,000. Upon liquidation, Sneha must recognize a gain of A) 0. B) $5,000. C) $8,000. D) $11,000. 26. Identify which of the following statements is true. A) A liquidating distribution of property other than a disqualified property that is made ratably to all shareholders (based on their stockholdings) will permit the recognition of loss on...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT