Sammy and Artie make transfers to a controlled Corp. Sammy transfers $10,000 in appreciated property and received $10,00...
Sammy and Artie make transfers to a controlled Corp. Sammy transfers $10,000 in appreciated property and received $10,000 in stock. Artie transfers his services and receives $10,000 in stock . Which is true?
a.). Artie is not taxed on the receipt of stock
b.). Artie is taxed on $10,000 of compensation income
c.). Sammy nd Artie have a different basis in their stock
d.) Sammy recognizes gain on the transfer
Homework Answers
The True Statement is :-
a. Artie is not taxed on the receipt of stock.
because Artie received of stock as wages against his service.
Artie's stock are not taxable at the time of receipt, but stock taxable on sale of stock under capital gain or loss.
Add Answer to:
Sammy and Artie make transfers to a controlled Corp. Sammy transfers $10,000 in appreciated property and received $10,00...
Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150,000) for 70...
Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $15,000 (basis of $3,000) and for legal services (worth $165,000) in organizing the corporation. What gain or income, if any, will the parties recognize on the transfer? Ann recognizes a gain of $______ and Bob recognizes a gain of $_____ and compensation income of $______. What basis do Ann and Bob have in...
Problem 4-33 (LO. 1,3) Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis...
Problem 4-33 (LO. 1,3) Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $15,000 (basis of $3,000) and for legal services (worth $165,000) in organizing the corporation. a. What gain or income, if any, will the parties recoonize on the transfer? Ann recognizes no gain or loss X of 0 X and Bob recognizes no gain or loss has compensation income of...
Kate transfers to her controlled corporation property with an adjusted basis of $10,000 in exchange for...
Kate transfers to her controlled corporation property with an adjusted basis of $10,000 in exchange for stock of the corporation with a fair market value of $8,000, $3,000 cash, and the assumption by the corporation of the indebtedness of Kate amounting to $4,000. Note: Type answers in the following format 1,000 no $ but use commas. a. What is Kate's realized gain? b. What is Kate's recognized gain? c. What is the corporation's basis for the property received? d. What...
1- nn and Bob form Robin Corporation. Ann transfers property worth $352,500 (basis of $123,375) for...
1- nn and Bob form Robin Corporation. Ann transfers property worth $352,500 (basis of $123,375) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $141,000 (basis of $28,200) and for legal services (worth $14,100) in organizing the corporation. a. What gain or income, if any, will the parties recognize on the transfer? Ann recognizes of $. Bob recognizes of $. b. What basis do Ann and Bob have in the Robin Corporation stock? Ann has a basis of...
Problem 18-31 (Algorithmic) (LO. 1, 3) Ann and Bob form Robin Corporation. Ann transfers property worth...
Problem 18-31 (Algorithmic) (LO. 1, 3) Ann and Bob form Robin Corporation. Ann transfers property worth $322,500 (basis of $112,875) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $129,000 (basis of $25,800) and for legal services (worth $12,900) in organizing the corporation. If there is no gain or loss, enter "0" for the amount. a. What gain or income, if any, will the parties recognize on the transfer? Ann recognizes of $ Bob recognizes of...
Krystin transfers property worth $200,000 (basis of $190,000) to Pierce Corporation for 90% of the stock...
Krystin transfers property worth $200,000 (basis of $190,000) to Pierce Corporation for 90% of the stock in Pierce Corporation (fair market value of $180,000) and receives $20,000 cash. Krystin recognizes gain on the transfer of: o $10,000 o$0 o $20,000 O $180,000
Problem 4-33 (LO. 1, 3) Ann and Bob form Robin Corporation. Ann transfers property worth $420,000...
Problem 4-33 (LO. 1, 3) Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150.000) for 20 shares in Robin Corporation. Bob receives 30 shares for property worth $15,000 (basis of $3,000) and for legal services (worth $165,000) in organizing the corporation. a. What gain or income, if any, will the parties recognize on the transfer? Ann recognizes pain of 1 5,000 X and Bob recognizes again compensation income of 165,000 of 15,000 X and has...
The receipt of nonqualified preferred stock in exchange for the transfer of appreciated property to a...
The receipt of nonqualified preferred stock in exchange for the transfer of appreciated property to a controlled corporation results in recognition of gain to the transferor. True False
Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,600,000...
Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,600,000 for 30 shares in Crow Corporation. Mary transfers property, basis of $80,000 and value of $1,480,000, and agrees to serve as manager of Crow for one year, in return Mary receives 50 shares of Crow. The value of Mary's services is $120,000. With respect to the transfers: a. Mary will not recognize gain or income, X b. Earl will recognize a gain of $1,400,000...
Wilbur transfers property valued at $100,000 (basis = $70,000) to the Debold Corporation in exchange for...
Wilbur transfers property valued at $100,000 (basis = $70,000) to the Debold Corporation in exchange for 100 percent of its stock. What is Wilbur’s realized gain or loss on the transfer and his recognized gain or loss? What is his basis in the stock received? What is the corporation’s basis in the property received?
Problem 4-33 (LO. 1,3) Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $15,000 (basis of $3,000) and for legal services (worth $165,000) in organizing the corporation. a. What gain or income, if any, will the parties recoonize on the transfer? Ann recognizes no gain or loss X of 0 X and Bob recognizes no gain or loss has compensation income of...
Kate transfers to her controlled corporation property with an adjusted basis of $10,000 in exchange for stock of the corporation with a fair market value of $8,000, $3,000 cash, and the assumption by the corporation of the indebtedness of Kate amounting to $4,000. Note: Type answers in the following format 1,000 no $ but use commas. a. What is Kate's realized gain? b. What is Kate's recognized gain? c. What is the corporation's basis for the property received? d. What...
Problem 18-31 (Algorithmic) (LO. 1, 3) Ann and Bob form Robin Corporation. Ann transfers property worth $322,500 (basis of $112,875) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $129,000 (basis of $25,800) and for legal services (worth $12,900) in organizing the corporation. If there is no gain or loss, enter "0" for the amount. a. What gain or income, if any, will the parties recognize on the transfer? Ann recognizes of $ Bob recognizes of...
Krystin transfers property worth $200,000 (basis of $190,000) to Pierce Corporation for 90% of the stock in Pierce Corporation (fair market value of $180,000) and receives $20,000 cash. Krystin recognizes gain on the transfer of: o $10,000 o$0 o $20,000 O $180,000
Problem 4-33 (LO. 1, 3) Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150.000) for 20 shares in Robin Corporation. Bob receives 30 shares for property worth $15,000 (basis of $3,000) and for legal services (worth $165,000) in organizing the corporation. a. What gain or income, if any, will the parties recognize on the transfer? Ann recognizes pain of 1 5,000 X and Bob recognizes again compensation income of 165,000 of 15,000 X and has...
The receipt of nonqualified preferred stock in exchange for the transfer of appreciated property to a controlled corporation results in recognition of gain to the transferor. True False
Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,600,000 for 30 shares in Crow Corporation. Mary transfers property, basis of $80,000 and value of $1,480,000, and agrees to serve as manager of Crow for one year, in return Mary receives 50 shares of Crow. The value of Mary's services is $120,000. With respect to the transfers: a. Mary will not recognize gain or income, X b. Earl will recognize a gain of $1,400,000...
Most questions answered within 3 hours.
-
Marla’s Massages and More bought a special massage table two
years ago for $9,300. At the...
asked 5 minutes ago -
Suppose you require a peak output voltage of 15.0 V and have
available an AC source...
asked 5 minutes ago -
We
conduct A study to estimate the mean age of the population of women
at the...
asked 17 minutes ago -
.13 : Assume that we make an enhancement to a computer that
improves some mode of...
asked 18 minutes ago -
4)
Find the tension in an elevator cable if the 1000 kg elevator is
descending with...
asked 24 minutes ago -
A random sample of 51 newborn babies was taken at the Hospital.
The sample mean was...
asked 22 minutes ago -
Industry standards suggest that 16% of new vehicles require
warranty service within the first year. Jones...
asked 34 minutes ago -
1) Comment of this statement: “A compiler transforms high-level
language statements directly into object codes”.
asked 37 minutes ago -
Calculate the molality, mole-fraction and percent mass of 28.9M
HF at 25 degrees Celcius of the...
asked 46 minutes ago -
A developmental psychologist believes that children raised in
bilingual families will have higher verbal fluency at...
asked 52 minutes ago -
A fast food meal has 5660 kJ of energy. A person uses energy at
a rate...
asked 1 hour ago -
The pKb for a generic amine(R-NH2)) in
aqueous solution is 6.30. What is its pKa?
asked 1 hour ago