6. Broadbill Corporation (E & P of $650,000) has 1,000 shares of common stock outstanding. The shares are owned by t...
6. Broadbill Corporation (E & P of $650,000) has 1,000 shares of common stock outstanding. The shares are owned by the following individuals: Tammy, 300 shares; Yvette, 400 shares; and Jeremy, 300 shares. Each of the shareholders paid $50 per share for the Broadbill stock four years ago. In the current year, Broadbill Corporation distributes $75,000 to Tammy in redemption of 150 of her shares. Determine the tax consequences of the redemption to Tammy and to Broadbill under the following independent circumstances. 1. Tammy and Jeremy are grandmother and grandson. 2. The three shareholders are siblings.
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6. Broadbill Corporation (E & P of $650,000) has 1,000 shares of common stock outstanding. The shares are owned by t...
Problem 19-57 (LO. 8, 9) Broadbill Corporation (E & P of $650,000) has 1,000 shares of...
Problem 19-57 (LO. 8, 9) Broadbill Corporation (E & P of $650,000) has 1,000 shares of common stock outstanding. The shares are owned by the following individuals: Tammy, 300 shares; Yvette, 400 shares; and Jeremy, 300 shares. Each of the shareholders paid $50 per share for the Broadbill stock four years ago. In the current year, Broadbill Corporation distributes $75,000 to Tammy in redemption of 150 of her shares. Determine the tax consequences of the redemption to Tammy and to...
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...
ABC Corporation has outstanding shares of common stock of which A, B, C and D each...
ABC Corporation has outstanding shares of common stock of which A, B, C and D each owns 100 shares. In on transaction, ABC Corporation redeems 55 shares from A, 25 shares from B, and 20 shares from C. The earnings and profits of ABC Corporation was $100,000 on the date of redemption. The redemption price was $100 per share. The shareholders purchased their stock more than one year ago for $80 per share. What is the tax effect to C...
Elm Corporation has 100 shares of stock outstanding of which Oak Corporation owns 75 shares with...
Elm Corporation has 100 shares of stock outstanding of which Oak Corporation owns 75 shares with a basis of $10,000, and Sherman Forest owns 25 shares with a basis of $30,000. Elm Corporation has a $50,000 net operating loss carryover and the following assets (all held long-term): Basis Fair Market Value Cash $20,000 $20,000 Installment Note $10,000 $40,000 Land $1,000 $10,000 Equipment (all Sec. 1245 recapture) $5,000 $10,000 $36,000 $80,000 What are the tax consequences if Elm Corporation adopts...
The stock of Orr Corporation (E & P of $1.5 million) is owned as follows: 90%...
The stock of Orr Corporation (E & P of $1.5 million) is owned as follows: 90% by Hoff Corporation (basis of $900,000), and 10% by Zoe (basis of $70,000). Both shareholders acquired their shares in Orr more than six years ago. In the current year, Orr Corporation liquidates and distributes land (fair market value of $1.1 million, basis of $1.3 million) and equipment (fair market value of $700,000, basis of $410,000) to Hoff Corporation, and securities (fair market value of...
A & W corporation is owned as follows (800 shares issues and outstanding): Mr. B Sr....
A & W corporation is owned as follows (800 shares issues and outstanding): Mr. B Sr. 25% (200 shares) Mr. C Sr. (B's brother) 25% (200 shares) Mrs. B (B Sr.'s wife) 10% (80 shares) Mr. B Jr. 10% 80 shares) Mr. C. Jr. 15% (120 shares) Mrs. C (CSr.'s wife) ( 40 shares) Darrel (Mr. C Sr.'s grandson) 10% 80 shares) TOTAL 100% 5% " Determine the (1) amount and (2) character of a redemption on the shareholder if...
Trusty Corporation has a single class of common stock outstanding. Jim owns 200 shares, which he...
Trusty Corporation has a single class of common stock outstanding. Jim owns 200 shares, which he purchased for $50 per share two years ago. On April 10 of the current year, Trusty distributes to its common shareholders one right to purchase for $60 one common share for each common share owned. At the time of the distribution, each common share is worth $75, and each right is worth $15. On September 10, Jim sells 100 rights for $2.000 and exercises...
8:12 < Chapter 20 Homework Assignment Q 1. Dove Corporation (E & Pof S800,000) has 1,000...
8:12 < Chapter 20 Homework Assignment Q 1. Dove Corporation (E & Pof S800,000) 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 S300,000, 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...
Z-Sisters Corporation has one class of voting common stock, of which 1,000 shares are issued and...
Z-Sisters Corporation has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows: Shares Lourdes Vick 400 Anita Vick (Lourdes’s daughter) 200 Liz Vick (Lourdes’s daughter) 200 Cat Labrillazo (unrelated) 200 Total 1000 Z-Sisters Corporation has current E&P of $300,000 for this year and accumulated E&P at January 1 of this year of $500,000. During this year, the corporation made the following distributions to its shareholders: 03/31: Paid a dividend...
1. Corporation Z has 100 shares of stock issued and outstanding, owned by the following: Shareholder...
1. Corporation Z has 100 shares of stock issued and outstanding, owned by the following: Shareholder Shares 10 10 R's wife 10 R's son R's mother 10 R's brother R's uncle Partnership X (R is a 10% partner Corporation A (R is a 40% shareholder) Corporation B (R is a 50% shareholder) Corporation C(R is an 80% shareholder) 100 Neither R's relatives nor the partnership or the corporations are partners in X or shareholders in A, B, or C. Under...
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...
A & W corporation is owned as follows (800 shares issues and outstanding): Mr. B Sr. 25% (200 shares) Mr. C Sr. (B's brother) 25% (200 shares) Mrs. B (B Sr.'s wife) 10% (80 shares) Mr. B Jr. 10% 80 shares) Mr. C. Jr. 15% (120 shares) Mrs. C (CSr.'s wife) ( 40 shares) Darrel (Mr. C Sr.'s grandson) 10% 80 shares) TOTAL 100% 5% " Determine the (1) amount and (2) character of a redemption on the shareholder if...
Trusty Corporation has a single class of common stock outstanding. Jim owns 200 shares, which he purchased for $50 per share two years ago. On April 10 of the current year, Trusty distributes to its common shareholders one right to purchase for $60 one common share for each common share owned. At the time of the distribution, each common share is worth $75, and each right is worth $15. On September 10, Jim sells 100 rights for $2.000 and exercises...
8:12 < Chapter 20 Homework Assignment Q 1. Dove Corporation (E & Pof S800,000) 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 S300,000, 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...
1. Corporation Z has 100 shares of stock issued and outstanding, owned by the following: Shareholder Shares 10 10 R's wife 10 R's son R's mother 10 R's brother R's uncle Partnership X (R is a 10% partner Corporation A (R is a 40% shareholder) Corporation B (R is a 50% shareholder) Corporation C(R is an 80% shareholder) 100 Neither R's relatives nor the partnership or the corporations are partners in X or shareholders in A, B, or C. Under...
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