Match the following.b. c. d. e.b. c. d. e.b. c. d. e.b. c. d. e.- a.- a.- a.- a.S corporationC corporationLimitedpartnershipGeneralpartnershipa. Contribution of appreciated property to the business entity by an owner is never subject to taxation.Realized gains on the contribution of appreciated property to the entity are not recognized by the contributor when an 80%control requirement is satisfied.Realized losses on the contribution of loss property to the entity are never recognized by the contributor.Realized losses on the contribution of loss property to the entity are recognized by the contributor unless an 80% controlrequirement is satisfied.b.C.d.e.Basis of ownership interest to the owner is dependent on whether gain or loss is recognized to the owner on thecontribution of assets to the business entity.

The matching exercise involves associating characteristics related to the tax treatment of…

c. d. e. c. d. e. c. d. e. c. d. e. - a. - a. - a. - a. S corporation C corporation Limited partnership General partnership a. Contribution of appreciated property to the business entity by an owner is never subject to taxation. Realized gains on the contribution of appreciated property to the entity are not recognized by the contributor when an 80% control requirement is satisfied. C. Realized losses on the contribution of loss property to the entity are never recognized by the contributor. Realized losses on the contribution of loss property to the entity are recognized by the contributor unless an 80% control requirement is satisfied. b. d. e. Basis of ownership interest to the owner is dependent on whether gain or loss is recognized to the owner on the contribution of assets to the business entity.

c. d. e. c. d. e. c. d. e. c. d. e. - a. - a. - a. - a. S corporation C corporation Limited partnership General partnership a. Contribution of appreciated property to the business entity by an owner is never subject to taxation. Realized gains on the contribution of appreciated property to the entity are not recognized by the contributor when an 80% control requirement is satisfied. C. Realized losses on the contribution of loss property to the entity are never recognized by the contributor. Realized losses on the contribution of loss property to the entity are recognized by the contributor unless an 80% control requirement is satisfied. b. d. e. Basis of ownership interest to the owner is dependent on whether gain or loss is recognized to the owner on the contribution of assets to the business entity.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 12MCQ

See similar textbooks

Similar questions

when a C-Corp distributes appreciated assets to its shareholders should recognize in in the corporate return a taxable profit on the appreciation?
True or False: An S Corporation recognizes gain on the distribution of appreciated property to its shareholders which is then reported to its shareholders on Schedule K-1.
1. Which of the following is not taxable income? a.Interest b.Hobby income c.Child support payments d.Royalties e.Dividends 2. Generally, for an activity to be treated as a trade or business, which of the following is required: a.No more than intermittent effort toward the activity b.Regular and continual effort designed to seek profit c.Always generate a profit d.Organization as a corporation or partnership 3. To be deductible as the cost of special work clothing or uniforms: a.The clothing need not be required as a condition of the job, but must not be suitable for everyday use. b.The clothing must be required as a condition of the job, but can also be suitable for everyday use. c.The clothing must not be suitable for everyday use and must be required as a condition of the job. d.Only the cost of the clothing is included; upkeep is not deductible.
Which of the following statements in incorrect? a. Donations of PPE should be recorded at the fair value of the donated asset at the time of donation. b. Property acquired in exchange for shares or other securities in the enterprise should be recorded at its fair value or the fair value of the securities, whichever is more clearly evident c. When property is acquired in exchange for another asset without commercial substance, no gain nor loss is recognized d. When a group of assets is acquired for a lump sum price, the total cost should be allocated to the individual assets based on their carrying amounts.
Relative to corporate formation, how can one contribute appreciated property without gaining recognition for the transferrer?
Select the best answer. Which of the following statements regarding transfers of property or services is true? For a transfer of property to a corporation, no gain is recognized by the taxpayer if the O A. transferred property is encumbered with liabilities in excess of the taxpayer's basis in the property. O O O If receipt of stock is subject to a substantial risk of forfeiture, income is recognized by th B. recipient in the year the stock is received even though the substantial risk of forfeiture h lapsed. If the contributing partner receives a capital interest in the partnership upon contributi C. services, the contributor will be taxed on the transfer when the contributor actually rec profits. In order for an exchange of services to a partnership for a profit interest to qualify as a D. nontaxable event, the service partner must provide services to the partnership or for it benefit, and the services must be provided by the service partner in his capacity as a p Submit Answers
All of the following statements are true, except: * a. When property is acquired in exchange for another, its cost is usually determined by reference to the fair value of the asset surrendered b. Property acquired in exchange for shares or other securities of the enterprise should be recorded at its fair value or the fair value of the securities, whichever is more clearly evident c. Donation of PPE should be recorded at the fair value of the donated asset d. When a group of assets is acquired for a lump sum price, the lump sum price should be allocated to the individual assets based on their carrying values.
Grape Corporation makes a nonliquidating distribution of appreciated property to its shareholders. The shareholders will report a gain. The shareholders will report dividend income equal to the basis of the property distributed. The corporation will report a gain. The corporation will report dividend expense equal to the fair value of the property distributed.
Which one of the following correctly states a basic feature of the IRC Chapter 14 special valuation rules? A) In a transfer of property in trust to which they apply, they make any income interest retained by the transferor that is a unitrust right subject to gift tax. B) They apply to any intrafamily transfer of assets for which there is no established market if the interest retained by the transferor is of the same type as the interest transferred. C) They apply to a transaction between family members to acquire, use, or sell at fair market value property for which there is no established market. D) In a transfer of a closely held business interest to which they apply, they make any distribution right retained by the transferor that is not fixed in time and amount subject to gift tax.
Transfers from investment property to property, plant and equipment are appropriate a. The entity can never transfer property into another classification on the balance sheet Once it is classified as investment property. b. When there is change of use. c. Only when the entity adopts the fair value model under IAS 38. d. Based on the entity’s discretion.
Under IFRS, income includes increases in economic benefi ts from: B . enhancements of assets not related to owners’ contributions
-If the donor is a shareholder, a revenue or gain is recognized at an amount equal to the value of the donated asset. - If the donor is a shareholder, the donation is recorded by crediting an appropriately titled additional paid in capital account. - PPE received as donation is recorded at its fair value less cost to sell at the time of donation. True or False