Question: Please Answer All of
Part C with details!
"Vogel recognizes a loss $0 and the net effect on Vogel's AAA is a decrease of $_____. Jamari would take a $150,000 basis in the land."
Homework Answers
| a) Vogel recognizes a capital gain of $225,000 ($375,000 − $150,000), which is reported on Vogel’s Schedule K, and a proportionate share of it passes through to the shareholders. Jamari Would take $375,000 basis in land. |
| b) There is net decrease of $150,000 ($225,000 − $375,000) on Vogel's AAA. |
| c) Vogel recognizes a loss $0 and the net effect on Vogel's AAA is a decrease of $150,000 . Jamari would take a $150,000 basis in the land." |
| If the land had been purchased for $375,000 and was currently worth $150,000, Jamari would take a $150,000 basis (fair market value) in the land. The $225,000 realized loss is not recognized at the corporate level. The loss does not reduce Vogel’s AAA. Only when the S corporation sells the asset does it recognize the loss and reduce AAA. Therefore, the net effect on AAA is a decrease of $150,000 (fair market value) |
Add Answer to:
Question: Please Answer All of Part C with details! "Vogel recognizes a loss $0 and the net effect on Vogel's AAA is a...
Vogel, Inc., an S corporation for five years, distributes a tract of land held as an...
Vogel, Inc., an S corporation for five years, distributes a tract of land held as an investment to Jamari, its majority shareholder. The land was purchased for $68,400 ten years ago and is currently worth $171,000. If an amount is zero, enter, "0". a. As a result of the distribution, what is Vogel's recognized capital gain? How much is reported as a distribution to shareholders? Vogel recognizes a capital gain of $ which is reported on Schedule K, and a...
Problem 11-35 (LO. 3) Jamie's basis in her partnership interest is $52,000. In a proportionate distribution...
Problem 11-35 (LO. 3) Jamie's basis in her partnership interest is $52,000. In a proportionate distribution in liquidation of the partnership, Jamie receives $2,000 cash and two parcels of land with bases of $10,000 and $18,000, respectively, each to the partnership. The partnership holds both parcels of land for investment, and the parcels have fair market values of $20,000 each. If there is no gain or loss or if an amount is zero, enter"0". a. How much gain or loss,...
The action options are: No Effect Added to Net Income Deducted from Net Income Part of...
The action options are:
No Effect
Added to Net Income
Deducted from Net Income
Part of Cash Flows from financing activities
Part of Cash Flows from investing activities
Please tell which action would go with which transaction and the
amounts.
Land Transactions on the Statement of Cash Flows Alpha Corporation purchased land for $473,000. Later in the year, the company sold a different piece of land with a book value of $298,000 for $268,000. How are the effects of these...
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...
Please answer part a and b for the following question. PROBLEMS 3.13 E&P Computation. For its...
Please answer part a and b for the following question.
PROBLEMS 3.13 E&P Computation. For its current taxable year. K Corporation, a manufactur of nuts and bolts, reported the following information using the accrual method of accounting: Income: Sales .... $575,000 Cost of goods sold (LIFO) ... (175,000) Gross profit from operations $400,000 Interest income: Municipal bonds 9,000 Corporate bonds 20,000 Dividends received 10,000 Ordinary income on installment sale .. 14,000 Life insurance proceeds 50,000 Expense: Selling and administrative expenses...
please answer the following question, part a, b and c PROBLEMS 5.17 Liquidations-General Rules (8$ 331...
please answer the following question, part a, b and c
PROBLEMS 5.17 Liquidations-General Rules (8$ 331 and 336). G an individual owns all the stock of T Corporation. G purchased the stock 15 vears ago for $450,000. G decided to completely liquidate T Corporation. The balance sheet of T Corporation immedi- ately prior to the liquidation is as follows: Fair Market Value Basis $ $ 30,000 100,000 30,000 90,000 Cash ........... Marketable securities.................. Equipment Less: Accumulated depreciation ........ Land .............
Ben and Jerry decide to incorporate their ice cream business. Allie would also like to be a shareholder in the bu...
Ben and Jerry decide to incorporate their ice cream business. Allie would also like to be a shareholder in the business. As such, Ben and Allie agree that immediately after the incorporation of the company and the issuance of stock, Ben will sell Allie half of his shares in the company. Ben contributes inventory (FMV $60,000, Basis $30,000), and accounts receivable (FMV $40,000, Basis $40,000) to the corporation for 50% of the stock, and Jerry contributes equipment (FMV $60,000, Basis...
The first and second photo are all part of one question. c. 9,100,000 d. 5,800,000 Pernt...
The
first and second photo are all part of one question.
c. 9,100,000 d. 5,800,000 Pernt ct s,700 Ne cetret erce 49,o00,000-39, 900,00 9,1o0,0c 916c,00K 3ey03,32 0c 13. At December 31, 2018, Penny Corporation had the following equity securities that were purchased during 2018, its first year of operation: Fair Unrealized Gain (Loss) Cost Value Trading Securities: Security A $ 85,000 15,000 $100,000 $(25,000) 5,000 $120,000) $60,000 20,000 $ 80.000 Totals Available-for-Sale Securities: $ 80,000 $10,000 (10,000) $(0 $70,000 85,000...
Please answer all three. Thank you. Bailey Sheppard Corp. ("BSC") manufactures musical equipment and is evaluating...
Please answer all three. Thank you.
Bailey Sheppard Corp. ("BSC") manufactures musical equipment and is evaluating the economics of expanding its manufacturing facility to enable it to take on a new business customer contract for the next 4 years. Last year, the company paid Target Research LLC $35,000 to do a marketing research study for its product lines. The current expansion scenario would have total construction costs of $1.3 million and it would take about 50 days to complete lie.,...
How to get RE of 54 880 and Net Income -59120 , highlighted above Question 4...
How to get RE of 54 880 and Net Income -59120 , highlighted
above
Question 4 (60 minutes, 23.5 marks) Today Ad Corp. is a company that provides advertising services to other companies. They have recently relocated in a new office building and, in the moving process, have lost most of their accounting documents. They were able to recover the adjusted trial balance at the end of December 31, 2016 (the current year) and the statement of cash flows prepared...
Problem 11-35 (LO. 3) Jamie's basis in her partnership interest is $52,000. In a proportionate distribution in liquidation of the partnership, Jamie receives $2,000 cash and two parcels of land with bases of $10,000 and $18,000, respectively, each to the partnership. The partnership holds both parcels of land for investment, and the parcels have fair market values of $20,000 each. If there is no gain or loss or if an amount is zero, enter"0". a. How much gain or loss,...
The action options are:
No Effect
Added to Net Income
Deducted from Net Income
Part of Cash Flows from financing activities
Part of Cash Flows from investing activities
Please tell which action would go with which transaction and the
amounts.
Land Transactions on the Statement of Cash Flows Alpha Corporation purchased land for $473,000. Later in the year, the company sold a different piece of land with a book value of $298,000 for $268,000. How are the effects of these...
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...
Please answer part a and b for the following question.
PROBLEMS 3.13 E&P Computation. For its current taxable year. K Corporation, a manufactur of nuts and bolts, reported the following information using the accrual method of accounting: Income: Sales .... $575,000 Cost of goods sold (LIFO) ... (175,000) Gross profit from operations $400,000 Interest income: Municipal bonds 9,000 Corporate bonds 20,000 Dividends received 10,000 Ordinary income on installment sale .. 14,000 Life insurance proceeds 50,000 Expense: Selling and administrative expenses...
please answer the following question, part a, b and c
PROBLEMS 5.17 Liquidations-General Rules (8$ 331 and 336). G an individual owns all the stock of T Corporation. G purchased the stock 15 vears ago for $450,000. G decided to completely liquidate T Corporation. The balance sheet of T Corporation immedi- ately prior to the liquidation is as follows: Fair Market Value Basis $ $ 30,000 100,000 30,000 90,000 Cash ........... Marketable securities.................. Equipment Less: Accumulated depreciation ........ Land .............
Ben and Jerry decide to incorporate their ice cream business. Allie would also like to be a shareholder in the business. As such, Ben and Allie agree that immediately after the incorporation of the company and the issuance of stock, Ben will sell Allie half of his shares in the company. Ben contributes inventory (FMV $60,000, Basis $30,000), and accounts receivable (FMV $40,000, Basis $40,000) to the corporation for 50% of the stock, and Jerry contributes equipment (FMV $60,000, Basis...
The
first and second photo are all part of one question.
c. 9,100,000 d. 5,800,000 Pernt ct s,700 Ne cetret erce 49,o00,000-39, 900,00 9,1o0,0c 916c,00K 3ey03,32 0c 13. At December 31, 2018, Penny Corporation had the following equity securities that were purchased during 2018, its first year of operation: Fair Unrealized Gain (Loss) Cost Value Trading Securities: Security A $ 85,000 15,000 $100,000 $(25,000) 5,000 $120,000) $60,000 20,000 $ 80.000 Totals Available-for-Sale Securities: $ 80,000 $10,000 (10,000) $(0 $70,000 85,000...
Please answer all three. Thank you.
Bailey Sheppard Corp. ("BSC") manufactures musical equipment and is evaluating the economics of expanding its manufacturing facility to enable it to take on a new business customer contract for the next 4 years. Last year, the company paid Target Research LLC $35,000 to do a marketing research study for its product lines. The current expansion scenario would have total construction costs of $1.3 million and it would take about 50 days to complete lie.,...
How to get RE of 54 880 and Net Income -59120 , highlighted
above
Question 4 (60 minutes, 23.5 marks) Today Ad Corp. is a company that provides advertising services to other companies. They have recently relocated in a new office building and, in the moving process, have lost most of their accounting documents. They were able to recover the adjusted trial balance at the end of December 31, 2016 (the current year) and the statement of cash flows prepared...
Most questions answered within 3 hours.
-
From past history, the scores on a statistics test are normally
distributed with a mean of...
asked 2 minutes ago -
Calculate the gravitational field strength on the highest peak
of Everest (8848 m above the Earth).
asked 2 minutes ago -
the energy value of carbohydrates is 4.0 cal/g. calculate the
energy in 250 g of carbohydrates,...
asked 4 minutes ago -
i
need the summary of this article “Why I Don’t Trust The Video Games
Cause Violence”...
asked 23 minutes ago -
Draw the reactants and products of the following
reaction:
3-ethyl-2-heptene + HOH → 3-ethyl-3-heptanol +
3-ethyl-2-heptanol...
asked 21 minutes ago -
Determine the ratio of adipic acid and butylene glycol that
should be used to obtain a...
asked 30 minutes ago -
Calculate the ratio of the resistance of 11.0 m of aluminum wire
2.5 mm in diameter,...
asked 23 minutes ago -
Kinkaid Co. is incorporated at the beginning of this year and
engages in a number of...
asked 27 minutes ago -
when setting up a simple pendulum, calculate the string length
required for the period to equal...
asked 46 minutes ago -
: A small but very close dense mass of 389 kg is brought close
to a...
asked 47 minutes ago -
Create a class called Hotel. The hotel class will track the
current reservations for your one-room...
asked 1 hour ago -
In space, a 4.0 kg metal ball moving 30 m/s has a head on
collision with...
asked 1 hour ago