During the year, P&B Construction Corp.distributed a crane used in its business to S, who owns 100 percent of the stock.The crane was worth $10,000 and had a basis of $19,000.The corporation also distributed land worth $70,000 (basis $40,000).Assuming P&B has substantial earnings and profits, the corporation will report A)No gain or loss B)$30,000 gain C)$9,000 loss D)$21,000 gain E)None of the above

During its first year of operation, K Corporation had a gross profit from operations of $180,000 anddeductions of $250,000 before considering its dividend income or dividends-received deduction. K received dividends of $50,000 from a taxable domestic corporation in which K owned 4.5 percent of the stock.Assuming its ownership of the dividend-paying corporation’s stock is not debt financed, what is K Corporation’s net operating loss for the year? A. 20,000 B. 49,000 C. 45,000 D. 65,000 E. 70,000

Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6 1.) Assuming Bourne reported $50,000 of nonrecaptured net §1231 losses during years 1–5, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income? 2.) Assuming Bourne’s nonrecaptured net §1231 losses from years 1–5 were $200,000, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?

Eleven years ago, Lynn, Incorporated purchased a warehouse for $315,000. This year,the corporation sold the warehouse to Firm D for $80,000 cash and D’s assumption ofa $225,000 mortgage. Through date of sale, Lynn deducted $92,300 straight-linedepreciation on the warehouse.Requiredc. How would your answers change if Lynn was a noncorporate business?

Bayelsa Corp. had the following transactions in the current year: Short term capital gain Short term capital loss Long term capital gain Long term capital loss If Bayelsa has taxable income of $70,000 before considering the capital transactions, what is Bayelsa's net capital loss that cannot be deducted in the current year? O SO $12,000 -$3,000 $5,000 -$16,000 O $19,000 net capital loss O $11,000 net capital loss O $2,000 net capital loss

Georgio owns a 20 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses: Sales Revenue                                                $70,000 Gain on Sale of Land (sec 1231)                $11,000 Costs of Goods Sold                                      (26,000) Depreciation- MACRS                                  (3,000) Sec 179 deduction                                        (10,000) Employee wages                                            (11,000) Nondeductible fines and penalties          (3,000) Municipal Bond interest                                             6,000 Short -term capital gains                             4,000 Guaranteed payment to Sandra                              (3,000) How much ordinary business income (loss) is allocated to Gorgio for the year? What are Georgio’s separately stated items for the year?

On January 1, 20x2, Gold Company purchased a computer with an expected economic life of five years. On January 1, 20x4, Gold sold the computer to TLK Corporation and recorded the following entry:      Cash                                         39,000     Accumulated Depreciation       16,000                   Computer Equipment             40,000                   Gain on sale of equipment     15,000 TLK Corporation holds 60 percent of Gold’s voting shares. Gold reported net income of P45,000, and TLK reported income from its own operations of P85,000 for 20x4. There is no change in the estimated life of the equipment as a result of the inter-corporate transfer. In the preparation of the 20x4 consolidated balance sheet, the computer equipment will be: A. Debited for 1,000          C. Credited for 24,000B. Debited for 15,000        D. Debited for 40,000

During the year, Leak Construction Corp. distributed a crane used in its business to Q, who owns 100 percent of the stock. The crane was worth $10,000 and had a basis of $19,000. The corporation also distributed land worth $70,000, with a basis of $40,000. Leak will report

Shauna and Danielle decided to liquidate their jointly owned corporation, Woodward Fashions Incorporated (WFI). After liquidating its remaining inventory and paying off its remaining liabilities, WFI had the following tax accounting balance sheet: Adjusted FMV Таx Basis Appreciation $ 165,000 33,000 $ 165,000 16,500 Cash Building 16,500 132,000 66,000 $ 247,500 Land 66,000 $ 330,000 $ 82,500 Total Under the terms of the agreement, Shauna will receive the $165,000 cash in exchange for her 50 percent interest in WFI. Shauna's tax basis in her WFI stock is $41,250. Danielle will receive the building and land in exchange for her 50 percent interest in WFI. Danielle's tax basis in her WFI stock is $82,500. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indicated by a minus sign.) c. What amount of gain or loss does…