Breslin Incorporated made a capital contribution of investment property to its 100-percent-owned subsidiary, Crisler Company. The investment property had a fair market value of $3,000,000 and a tax basis to Breslin of $2,225,000. b. What is the tax basis of the investment property to Crisler Company after the contribution to capital?

3

s

jagdish

Company A purchased company B for $50,000,000. Company B had net assets of $30,000,000, therefore $20,000,000 was paid in excess of the fair value of the net assets.  What does this $20,000,000 premium paid by company A represent?  In other words, what is this called?

In some commercial property operating agreements, investors are scheduled to receive their “pro rata” share of all cash flow distributions. Based on your understanding of what is meant by a “pro rata” distribution, an investor that contributed 1/10 of the required equity investment would be entitled to receive what proportion of all future cash flows?

Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted bases: Inventory Building Land Total FMV 88,000 660,000 1,012,000 $1,760,000 $ Adjusted Basis 44,000 440,000 1,320,000 $1,804,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $1,660,000. The transaction met the requirements to be tax-deferred under §351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)

Which of the following assets is NOT subject to capital gains tax? Select one: Shares acquired in October 1985 and sold for profit in 2020 Rare coin acquired for $550 and sold for $1,000 Sale of the tax payer's main residence All of the options will attract CGT Canoe acquired for $12,000 and sold for $15,000