18) Marie acquired a 100% shareholding in Luke for $500,000 when Luke's fair value of net assets was $400,000. The next year the recoverable amount of Luke was $150,000 and the fair value of Luke's net assets was $120,000. Determine the amount of impairment gain/loss. Select one: O a. $20,000 loss O b. $20,000 gain O c. $50,000 gain O d. $50,000 loss 27

18) Marie acquired a 100% shareholding in Luke for $500,000 when Luke's fair value of net assets was $400,000. The next year the recoverable amount of Luke was $150,000 and the fair value of Luke's net assets was $120,000. Determine the amount of impairment gain/loss. Select one: O a. $20,000 loss O b. $20,000 gain O c. $50,000 gain O d. $50,000 loss 27

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 9BCRQ

See similar textbooks

Similar questions

C Corporation converts to S Corporation when the fair market value of its assets was $100,000 and its basis of those assets was $60,000. Three years later, S Corporation sells those assets for $120,000. What is the total gain recognized when S Corporation sells those assets for $120,000?
Asap Marie acquired a 100% shareholding in Luke for $500,000 when Luke's fair value of net assets was $400,000. The next year the recoverable amount of Luke was $150,000 and the fair value of Luke's net assets was $120,000. Determine the amount of impairment gain/loss.
1.Stevens owns 60% of David. In 2020 Stevens has net income of $80,000 and David has net income of $60,000. There is also $4,000 of annual excess amortization associated with David’s acquisition date equipment plus David had a $3,000 gain on intercompany sale of land to Stevens. Stevens had a $5,000 gain on an intercompany sale of land to David. How much is noncontrolling interest in subsidiary net income 2.In 2019 a 90% owned subsidiary had $60,000 of unrealized gains on intercompany sales to its parent. In 2020 the subsidiary sold $200,000 of goods to its parent and had $30,000 of unrealized gains. In 2020 parent reports Cost of Goods Sold of $4,000,000 and sub reports Cost of Goods Sold of $1,000,000. How much is Consolidated Cost of Goods Sold.
18) Marie acquired a 100% shareholding in Luke for $500,000 when Luke's fair value of net assets was $400,000. The next year the recoverable amount of Luke was $150,000 and the fair value of Luke's net assets was $120,000. Determine the amount of impairment gain/loss. Select one: O a. $20,000 loss O b. $20,000 gain O c. $50,000 gain O d. $50,000 loss 4
Henrietta transfers cash of $312,400 and equipment with a fair market value of $93,720 (basis to her as a sole proprietor, $37,488) in exchange for a 40% profit and loss interest worth $406,120. If an amount is zero, enter "0". a. How much are Henrietta's realized and recognized gains?Realized gain: $ ________Recognized gain: $_________ b. What is the amount of Henrietta's basis in her partnership interest?$__________ c. What is the partnership's basis in the contributed equipment? $__________
15. Stevens owns 60% of David. In 2020 Stevens has net income of $80,000 and David has net income of $60,000. There is also $4,000 of annual excess amortization associated with David’s acquisition date equipment plus David had a $3,000 gain on intercompany sale of land to Stevens. Stevens had a $5,000 gain on an intercompany sale of land to David. How much is noncontrolling interest in subsidiary net income
1. Blue Corporation distributes land and building having a $70,000 adjusted basis and a $200,000 FMV to its sole shareholder, Marina. Blue has current and accumulated E&P exceeding $200,000. The property is subject to a $120,000 mortgage, which Marina assumes. What is the amount of the taxable dividend received by Marina? Group of answer choices $80,000 $70,000 $0 $130,000
1. Pat acquired 80% of Sam at the fair value of $160 on 1/1/2020. On that date, the book value of Sam= $200. There were zero fair value adjustments to individual assets and labilities and no goodwill from acquisition. Net income of Pat is $300 and net income of Sam is $50 across both 2020 and 2021. Sam pays no dividends. In 2020, Pat sold 2 widgets to Sam. The widgets cost Pat $2.50 each to make. Pat sold the widgets to Sam at $4 each. Sam sold 1 of those 2 widgets to an outsider in 2020 for $10. Sam sold the other widget to an outsider the next year for $10. a.) What does Pat report for Sales, COGS, Net Profit, and Inventory for 2020? What does Sam report for Sales, COGS, Net Profit, and Inventory for 2020? What should be the consolidated totals for these accounts for 2020? b.) What are the consolidation entries that Pat writes down for 2020 regarding this inventory sale? Repeat for a.) and b.) for 2021. c.) What is the overall reported profit across the two years from the sale of…
16. TP received a proportionate liquidating distribution of his LLC interest. His outside basis was $50,000. He received $20,000 cash; and land with a basis and FMV of $20,000. As a result of this distribution TP has which of the following results? a. Recognized loss of $10,000 and land basis of $20,000 b. Realized loss of $10,000; recognized loss of $10,000 c. 0 realized loss; 0 recognized loss and a land basis of $20,000 d. Recognized loss of 0 and a land basis of $30,000 e. Realized and recognized loss of $30,000
(7) H Co acquires S Co for $1,040,000 when the balances of share capital and retained profits of S Co amount to respectively $450,000 and $360,000. S Co holds two properties which are depreciated over 10 years for both tax and accounting purposes, and will be recovered through use. The tax rate is 20%. The carrying amounts, fair values and tax bases of the net assets of S Co, and resulting temporary differences are shown below: All the timing differences are temporary differences. All the temporary differences are timing differences. If the differences between the carrying amount of an asset or liability and its tax base 2 Carrying Amount $ Fair Value $ Tax base $ Property 1 Property 2 Other net assets Total 320,000 390,000 400,000 420,000 90,000 90,000 810,000 900,000 300,000 450,000 90,000 840,000 According to the tax rules, the tax bases of the net assets of S Co are not changed when the net assets are acquired by H Co. What’s the amount of the goodwill? A.…