Dennis contributed business assets to a new business in exchange for stock in the company. The exchange did not qualify as a tax- deferred exchange. The fair market value of these assets was $367,000 on the contribution date. Dennis's original basis in the assets he contributed was $216,000, and the accumulated depreciation on the assets was $122,250. Required a. What is the business's basis in the assets it received from Dennis? b. What would be the business's basis if the transaction qualified as a tax-deferred exchange? a. Business's basis b. Business's basis

Tristan transfers property with a tax basis of $1,160 and a falr market value of $1,720 to a corporation In exchange for stock with a falr market value of $1,160 and $390 In cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $170 on the property transferred. What Is the corporation's tax basis In the property recelved In the exchange? Multiple Cholce $1,720 $1,550 $1,330 $1,160

3. Omega Corporation purchased a motor vehicle worth P1,400,000 for the use of its executive. It was registered under the executive's name despite the agreemnt that it should be used partly for the company's benefit. How much is the fringe benefits tax?

Which of the following is true with respect to the related party rules? a.A disallowed loss on a related party transaction can be used to offset any future gain when the property is sold to an unrelated party. b.Bill sells stock to his sister for a $3,000 loss. Bill can deduct the loss on his tax return. c.A taxpayer's uncle is a related party for purposes of Section 267. d.Under the constructive ownership rules of Section 267, a shareholder owns 10 percent of the stock owned by a corporation in which he or she is a shareholder. e.None of these choices are correct.

d

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1. George operates a business that generated revenues of $50 million and allocable taxable income of $560,000. Included in the computation of allocable taxable income were $900,000 of business interest expense, $20,000 of business interest income, and $180,000 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year if the business does not qualify under the gross income test? a) $168,000 b) $560,000 c) $612,000 d) $452,000   2. Mike started a calendar-year business on September 1stSeptember 1st of this year by paying 12 months of rent on his shop at $550 per month. What is the maximum amount of rent that Mike can deduct this year under each type of accounting method? a) $6,600 under the cash method and $6,600 under the accrual method   b) $6,600 under the cash method and $2,200 under the accrual method c) $2,200 under the cash method and $2,200 under the accrual method d) $2,200 under the cash method and zero under the…

Hello, I need help solving this accounting problem.

Casey transfers property with a tax basis of $2,840 and a fair market value of $6,600 to a corporation in exchange for stock with a fair market value of $4,800 and $450 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,350 on the property transferred. Casey also incurred selling expenses of $372. What is the amount realized by Casey in the exchange? Multiple Choice $6,600 $6,228 $6,128 $5,678

What is the taxable income if the taxpayer had chosen itemized deduction? * A domestic corporation had the following data for 2002, the accumulated earnings for which year the Bureau of Internal Revenue considered to be improper: Sales Cost of sales Business expense Interest on Philippine currency bank deposit Capital gain on sale directly to buyer of shares of domestic corporation Dividend income from domestic corporation Dividend declared and paid during the year P6,000,000 2,000,000 1,000,000 50,000 120,000 60,000 500,000