Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percentof the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases:InventoryBuildingLandTotalFMV$ 10,00050,000100,000$ 160,000Adjusted TaxBasis$ 4,00030,00050,000$ 84,000The fair market value of the corporation's stock received in the exchange equaled the fair market value of the assets transferred to thecorporation by Ramon.Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.Required:a. What amount of gainloss does Ramon realize on the transfer of the property to his corporation?b. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation?c. What is Ramon's basis in the stock received in the new corporation?Required AComplete this question by entering your answers in the tabs below.Answer is complete but not entirely correct.Required B Required C

Realizing and recognizing gains or losses are two different things: realizing is when a gain or loss…

Answered: FMV $ 10,000 50,000 100,000 $ 160,000…

FMV $ 10,000 50,000 100,000 $ 160,000 Adjusted Tax Basis $ 4,000 30,000 50,000 $ 84,000 lue of the corporation's stock received in the exchange equaled the fa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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CARDO COMPANY Book Value Fair Value Book Value Fair Value Cash P500,000 P500,000 Accounts Payable P450,000 P440,000 Accounts Receivable 250,000 240,000 Mortgage Payable 200,000 220,000 Inventory 155,000 200,000 Ordinary Shares 595,000 - Fixed Assets (Net) 600,000 520,000 Retained Earnings 260,000 - SYANO COMPANY Book Value Fair Value Book Value Fair Value Cash P300,000 P300,000 Accounts Payable P350,000 P340,000 Accounts Receivable 150,000 160,000 Mortgage Payable 200,000 220,000 Inventory 125,000 100,000 Ordinary Shares 250,000 - Fixed Assets (Net) 400,000 420,000 Retained Earnings 175,000 - If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct,…
a. 272,500 b. 275,000 c. 277,500 d. 280,000
Q5
LL %24 The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as BALANCE SHEETS December 31, 2020 Patrick Sean Cash Accounts receivable (net) Inventories Plant and equipment (net) Investment in Sean 24 000'9 000 9 000 00000 000 0 000 $1,400,000 $ 418,000 Total assets 82,000 Accounts payable Long-term debt Common stock ($10 par) Additional paid-in capital Retained earnings 000'8 000 306,000 262,000 000't78 Total liabilities and shareholders' 000 Additional Information: • On December 31, 2020, Patrick acquired 100 percent of Sean's voting stock in exchange for $454,000. • At the acquisition date, the fair values of Sean's assets and liabilities equaled their carrying amounts, respectively, except that the fair value of certain items in Sean's inventory were $20,000 more than their carrying amounts. In the December 31, 2020, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?…
PROBLEM FIVE Wrap Ltd. is a Canadian-controlled private corporation. At the end of 2022, Wrap had the following tax account balances. Non-capital losses $ 8,000 Net capital losses 2,000 Non-eligible RDTOH 7,000 Dividend refund from non-eligible dividends 1,000 CDA 12,000 For the current year, 2023, net income for tax purposes is $261,000. Included in this amount is the following. Income from an active business carried on in Canada $200,000 Taxable capital gain 6,000 Eligible dividends from Canadian public companies 15,000 Canadian bond interest 40,000 The following is a summary of other information for Wrap Ltd. for the 2023 year. Taxable income Required: $236,000 Capital dividend paid 12,000 Eligible dividend paid 10,000 Non-eligible dividend paid 75,000 Small business deduction 38,000 Total Federal Part I tax payable 31,920 Determine the dividend refund for 2023. Would the dividend refund change if Wrap Ltd. was not a CCPC but instead was a private corporation or a public…
20 Skipped Assume that Puritan Corporation operates in an industry for which NOL carryback is allowed. Puritan Corporation reported the following pretax accounting income and taxable income for its first three years of operations: 2023 $ 358,000 2024 (503,000) 2025 753,000 Puritan's tax rate is 25% for all years. Puritan elected a loss carryback. As of December 31, 2024. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback. What would Puritan report as net income for 2025? Multiple Choice $564,750 $141,198 $611,812 $613,804
Norway Company investments to Latvia Company are: Preference share capital 15% Ordinary share capital 40% Latvia Company's share capital outstanding on December 31 2021. is as follows: 10% Cumulative preference share capital P2,000.000 Ordinary share capital 7.000.000 Latvia Company reported a net income of P5.000.000 for the year ended Doccember 31. 2021. How much is the investment income for December 31. 2021?
What is Ratio Corporation's Current Ratio at 12/31/2021? Question 2 options: 2.11 2.22 1.21 None of these options
None
Question:29 Your corporation has the following cash flows: Operating income $ 2,50,000 Interest received 10,000 Interest paid 45,000 Dividends received 20,000 Dividends paid 50,000 If the applicable income tax rate is 40 percent, and if 70 percent of dividends received are exempt from taxes, what is the corporation's tax liability? A) $74,000 B) $88,400 C) $91,600 D) $100,000 E) $106,500
plss help mee thank you Y Corporation, a family-closed corporation, had the following selected data for 201A, the accumulated earnings for which year the BIR considered to be improper: Non-taxable gain on life insurance of Y Co.’s president P900,000 Income tax due 201A 780,000 Quarterly income tax paid 580,000 Dividend declared and paid during the year 440,000 Reserve for maturing bonds in 201B 300,000 Tax-exempt dividend income from resident corporation 200,000 Net-operating loss carry-over (NOLCO) deducted 100,000 Capital gain on direct sale to the buyer of shares of another domestic corporation, net of final tax 85,000 Interest income on peso deposit, net of final tax 16,000 Compute the amount of improperly accumulated earnings tax (IAET).
PROBLEM FIVE Wrap Ltd. is a Canadian-controlled private corporation. At the end of 2022, Wrap had the following tax account balances. Non-capital losses $ 8,000 Net capital losses 2,000 Non-eligible RDTOH 7,000 Dividend refund from non-eligible dividends 1,000 CDA 12,000 For the current year, 2023, net income for tax purposes is $261,000. Included in this amount is the following. Income from an active business carried on in Canada $200,000 Taxable capital gain 6,000 Eligible dividends from Canadian public companies 15,000 Canadian bond interest 40,000 The following is a summary of other information for Wrap Ltd. for the 2023 year. Taxable income Required: $236,000 Capital dividend paid 12,000 Eligible dividend paid 10,000 Non-eligible dividend paid 75,000 Small business deduction 38,000 Total Federal Part I tax payable 31,920 Determine the dividend refund for 2023. Would the dividend refund change if Wrap Ltd. was not a CCPC but instead was a private corporation or a public…