Exercise 22-19 (Algorithmic) (LO. 7) 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 $71,800 ten years ago and is currently worth $179,500. 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 $ a proportionate share of it passes through to the shareholders land. b. What is the net effect of the distribution on Vogel's AAA? There is a net decrease ✓of $ Vogel recognizes a loss $ would take a $ 107,700 ✓ which is reported on Schedule K, and ✓. Jamari would take a $ 71,800✔ on Vogel's AAA. c. Assume instead that the land had been purchased for $179,500 and was currently worth $71,800. How much would Vogel recognize as a loss? What would be the net effect on Vogel's AAA? What would be Jamari's basis in the land? Feedback 0✔and the net effect on Vogel's AAA is a decrease 71,800✔ basis in the land. 179,500✔ basis in the of $ 71,800 X. Jamari

Exercise 22-19 (Algorithmic) (LO. 7) 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 $71,800 ten years ago and is currently worth $179,500. 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 $ a proportionate share of it passes through to the shareholders land. b. What is the net effect of the distribution on Vogel's AAA? There is a net decrease ✓of $ Vogel recognizes a loss $ would take a $ 107,700 ✓ which is reported on Schedule K, and ✓. Jamari would take a $ 71,800✔ on Vogel's AAA. c. Assume instead that the land had been purchased for $179,500 and was currently worth $71,800. How much would Vogel recognize as a loss? What would be the net effect on Vogel's AAA? What would be Jamari's basis in the land? Feedback 0✔and the net effect on Vogel's AAA is a decrease 71,800✔ basis in the land. 179,500✔ basis in the of $ 71,800 X. Jamari

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 21P

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