Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet:
FMV | Adjusted Basis | Appreciation (Depreciation) | |||||||
Cash | $ | 265,500 | $ | 265,500 | |||||
Building | 83,000 | 19,750 | 63,250 | ||||||
Land | 182,500 | 272,500 | (90,000 | ) | |||||
Total | $ | 531,000 | $ | 557,750 | $ | (26,750 | ) | ||
Under the terms of the agreement, Tiffany will receive the $265,500
cash in exchange for her 50 percent interest in ROF. Tiffany's tax
basis in her ROF stock is $57,500. Carlos will receive the building
and land in exchange for his 50 percent interest in ROF. His tax
basis in the ROF stock is $120,000. Assume for purposes of this
problem that the cash available to distribute to the shareholders
has been reduced by any tax paid by the corporation on gain
recognized as a result of the liquidation.
a. What amount of gain or loss does ROF recognize in the complete liquidation?
b. What amount of gain or loss does Tiffany recognize in the complete liquidation?
c. What amount of gain or loss does Carlos
recognize in the complete liquidation?
d. What is Carlos’s tax basis in the building and
land after the complete liquidation?
Assume Tiffany owns 40 percent of the ROF stock and Carlos owns
60 percent. Tiffany will receive $212,400 in the liquidation and
Carlos will receive the land and building plus $53,100.
e. What amount of gain or loss does ROF recognize
in the complete liquidation?
f. What amount of gain or loss does Tiffany
recognize in the complete liquidation?
g. What amount of gain or loss does Carlos recognize in the complete liquidation?
h. What is Carlos’s tax basis in the building
and land after the complete liquidation?
Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating...
Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet: FMV Adjusted Basis Appreciation (Depreciation) Cash $ 365,250 $ 365,250 Building 70,250 27,500 42,750 Land 295,000 372,500 (77,500 ) Total $ 730,500 $ 765,250 $ (34,750 ) Under the terms of the agreement, Tiffany will receive the $365,250 cash in exchange for her 50 percent interest in...
Thanks for your help!!! 31. Breezy Corporation is owned 75% by Leticia and 25% by LaShawn. Breezy Corporation owns Cloud Corporation stock with a $45,000 adjusted basis and a $25,000 FMV. The stock is not disqualified property. As part of a complete liquidation, the Cloud Corporation stock is distributed to LaShawn. LaShawn's basis in her Breezy stock is $35,000. Breezy Corporation will recognize A) none of the above. B) a $15,000 loss. C) a $25,000 gain. D) no loss. 32....
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can you do it with more details
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Jalen transferred his 10...
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