Which is true of the provisions of IRC 351? A. It allows for ordinary loss treatment...
Homework Answers
Ans C. It encourages corporate formation
It does not apply to transfer of property for stock and debt instruments neither It encourages corporate formation.
Add Answer to:
Which is true of the provisions of IRC 351?
A. It allows for ordinary loss treatment...
which is not trye if IRC 1244 stock? ordinary loss treatment is limited to $50000 per...
which is not trye if IRC 1244 stock? ordinary loss treatment is limited to $50000 per shareholders and $100000 on a joint return stock loses its 1244 status when it is transferred only individuals and partnerships are eligible for ordinary loss treatment only small business trusts qre eligible for ordinary loss treatment
he last day of the month D) $100,000 ordinary loss; $50,000 ordinary loss carryforward (23) Identify...
he last day of the month D) $100,000 ordinary loss; $50,000 ordinary loss carryforward (23) Identify which of the following statements is false. A) A corporation's fiscal year generally must end on the last day of B) A fiscal year may not end on December 31. C) A new corporation can elect a fiscal year that runs from February 16 the following year. D) A corporation's first tax year may not cover a full 12-month period. (24. Identify which of...
Problem 4-49 (0.6) Gigi transfers real estate (basis of $60,000 and fair market value of $40,000...
Problem 4-49 (0.6) Gigi transfers real estate (basis of $60,000 and fair market value of $40,000 to Monarch Corporation in exchange for shares of 5 1244 stock. Assume that the transfer qualifies under 5 351. a. What is the basis of the stock to Gigi? (Gigi and Monarch do not make an election to reduce her stock basis.) The basis of the stock to Gigi is $ 60,000 In an exception to the capital treatment that generally results. 1244 permits...
26. Identify which of the following statements is true. A) A corporate capital loss can be...
26. Identify which of the following statements is true. A) A corporate capital loss can be carried back three years, and then can be carried forward five years. B) Corporate capital loss carrybacks can offset corporate ordinary income earned in previous years. C) At the election of a corporation, a net capital loss carryback can be forgone and carried forward only. D) All of the above are false.
14-19 please 14. For Section 351 transfers, immediately after the exchange a. requires simultaneous transfer, if...
14-19 please
14. For Section 351 transfers, immediately after the exchange a. requires simultaneous transfer, if two or more transferors b. allows transfers to occur up to two years apart c. allows transfers to occur up to three years apart d. means that transfers should occur as close together as possible e, none of the above 13. Section 351 transfers for property and services are acceptable as long as the property value is at least a. 5% of the value...
18. Identify which of the following statements is true. A) With limited exceptions, a loss can...
18. Identify which of the following statements is true. A) With limited exceptions, a loss can be recognized by a liquidating corporation when it makes a liquidating distribution of property that has declined in value. B) When computing the corporate-level gain on a liquidating distribution, the FMV of the property cannot exceed the liability assumed or acquired by the shareholder. C) The FMV of property distributed by a liquidating corporation can be less than the amount of the liability assumed...
Six years ago, Donna purchased land as an investment. The land cost $150,000 and is now...
Six years ago, Donna purchased land as an investment. The land cost $150,000 and is now worth $480,000. Donna plans to transfer the land to Development Corporation, which will subdivide it and sell individual tracts. Development's income on the land sales will be ordinary in character. Read the requirements Requirement a. What are the tax consequences of the asset transfer and land sales if Donna contributes the land to Development in exchange for all its stock? Donna recognizes no gain...
(13) Identify which of the following statements is true. A) If stock and boot property are...
(13) Identify which of the following statements is true. A) If stock and boot property are both received in a Sec. 351 exchange, the transferor must allocate the total basis in the contributed property between the stock and boot property based on the relative FMVs of the stock and the boot property. B) The adjusted basis of stock received in a Sec. 351 transaction is computed by deducting the deferred loss from the FMV of the stock received. C) The...
1. TF.07.042 Currently, a net operating loss can be carried forward only (no carryback exists). True...
1. TF.07.042 Currently, a net operating loss can be carried forward only (no carryback exists). True False 2. TF.08.006 The maximum cost recovery method for all personal property under MACRS is 150% declining balance True False 3. DRILL business and nonbusiness bad debts Tax Drill - Business and Nonbusiness Bad Debts Complete the following statements regarding business and nonbusiness bad debts. bad debt is a debt unrelated to the taxpayer's trade or business either when it was created or when...
Question 1 Which of the following is an incorrect statement regarding the tax consequences of a...
Question 1 Which of the following is an incorrect statement regarding the tax consequences of a § 306 stock disposition? In a sale of § 306 stock, the shareholder generally recognizes ordinary income equal to the fair market value of the preferred stock on the date it was acquired in the stock dividend. No loss is recognized on a sale of § 306 stock. The issuing corporation’s E & P is not reduced by a sale of § 306 stock....
he last day of the month D) $100,000 ordinary loss; $50,000 ordinary loss carryforward (23) Identify which of the following statements is false. A) A corporation's fiscal year generally must end on the last day of B) A fiscal year may not end on December 31. C) A new corporation can elect a fiscal year that runs from February 16 the following year. D) A corporation's first tax year may not cover a full 12-month period. (24. Identify which of...
Problem 4-49 (0.6) Gigi transfers real estate (basis of $60,000 and fair market value of $40,000 to Monarch Corporation in exchange for shares of 5 1244 stock. Assume that the transfer qualifies under 5 351. a. What is the basis of the stock to Gigi? (Gigi and Monarch do not make an election to reduce her stock basis.) The basis of the stock to Gigi is $ 60,000 In an exception to the capital treatment that generally results. 1244 permits...
14-19 please
14. For Section 351 transfers, immediately after the exchange a. requires simultaneous transfer, if two or more transferors b. allows transfers to occur up to two years apart c. allows transfers to occur up to three years apart d. means that transfers should occur as close together as possible e, none of the above 13. Section 351 transfers for property and services are acceptable as long as the property value is at least a. 5% of the value...
18. Identify which of the following statements is true. A) With limited exceptions, a loss can be recognized by a liquidating corporation when it makes a liquidating distribution of property that has declined in value. B) When computing the corporate-level gain on a liquidating distribution, the FMV of the property cannot exceed the liability assumed or acquired by the shareholder. C) The FMV of property distributed by a liquidating corporation can be less than the amount of the liability assumed...
Six years ago, Donna purchased land as an investment. The land cost $150,000 and is now worth $480,000. Donna plans to transfer the land to Development Corporation, which will subdivide it and sell individual tracts. Development's income on the land sales will be ordinary in character. Read the requirements Requirement a. What are the tax consequences of the asset transfer and land sales if Donna contributes the land to Development in exchange for all its stock? Donna recognizes no gain...
(13) Identify which of the following statements is true. A) If stock and boot property are both received in a Sec. 351 exchange, the transferor must allocate the total basis in the contributed property between the stock and boot property based on the relative FMVs of the stock and the boot property. B) The adjusted basis of stock received in a Sec. 351 transaction is computed by deducting the deferred loss from the FMV of the stock received. C) The...
1. TF.07.042 Currently, a net operating loss can be carried forward only (no carryback exists). True False 2. TF.08.006 The maximum cost recovery method for all personal property under MACRS is 150% declining balance True False 3. DRILL business and nonbusiness bad debts Tax Drill - Business and Nonbusiness Bad Debts Complete the following statements regarding business and nonbusiness bad debts. bad debt is a debt unrelated to the taxpayer's trade or business either when it was created or when...
Most questions answered within 3 hours.
-
The manager at a car assembly plant believes that the mean
assembly time for a car...
asked 5 minutes ago -
Which of the following is true of electron capture?
A) It decreases the nuclide's mass number...
asked 1 hour ago -
Assuming an efficiency of 43.10%, calculate the actual yield of
magnesium nitrate formed from 114.9 g...
asked 2 hours ago -
The highly pathogenic bacterium Clostridium
perfringens causes gangrene, a disease that results in the
destruction of...
asked 3 hours ago -
In the context of situation analysis, which of the following is
a category for analysis in...
asked 3 hours ago -
In a study of the gas phase decomposition of sulfuryl chloride
at 600 K SO2Cl2(g)SO2(g) +...
asked 4 hours ago -
75 g of 2-propanol (C3H8O) and 25 g of pentane are mixed in a
200 mL...
asked 4 hours ago -
The 2800-turn coil in a dc motor has an area per turn of 1.1 ×
10-2...
asked 4 hours ago -
Draw a combinational logic circuit diagram with a symbol inside
the box for two I/P of...
asked 4 hours ago -
The cliché we use quite a lot in finance is: there is a need to
maximize...
asked 4 hours ago -
In class we discussed the addition of HCl to alpha pinene. Would
you expect one or...
asked 4 hours ago -
I'm trying to explain to my daughter to help her please help
me
I tagged the...
asked 4 hours ago