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.

Pretzel acts as a sponsor in creating a special purpose entity (SPE) that will purchase Accounts Receivable from Pretzel. Under what circumstances will Pretzel be required to treat the SPE as a variable interest entity and consolidate it as its primary beneficiary .      a. Pretzel is not entitled to any profits that the SPE earns     b. Pretzel agrees to reimburse SPE shareholders in the event the SPE has losses.     c. Pretzel receives money from SPE for the fair value of assets that Pretzel sells to it     d. Pretzel has no voting rights or ability to direct SPE activities     e. The SPE has stockholders equity equal to 20% of  SPE assets   choose one

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.

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to be a personal holding company, the corporation must have been formed or availed of for the purpose of avoiding tax on the shareholders. true or false

Which of the following statements is true related to the conversion of a regular corporation to a limited liability company taxed as a partnership? A. In the conversion of a C corporation to an LLC taxed as a partnership, the transfer of appreciated assets from the liquidating corporations is not taxed at the corporate level. B. The corporation can contribute it's assets and liabilities into the new LLC in exchange for ownership interests. The corporation then distributes the LLC interests to it's shareholders in liquidation of the shareholders corporate stock. C. If the corporation distributes it's assets and liabilities to it's shareholders in liquidation of the new corporation, the shareholders are restricted from contributing these assets into the new partnership. D. The existence of substantially appreciated intangibles and goodwill with little or no tax basis has no consequences when converting a C corporation to an LLC

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

Describe the ideas and valuation techniques that underpin the acquisition method of accounting for noncontrolling interests in a corporation.

Which of the following items retain their character when they are passed through to shareholders of an S corporation?          Wages paid Accelerated depreciation Net long-term capital gains Advertising expense All of the above retain their character when passed through

Please proivide tax implications at both the Corporate and Shareholder level for each response. Add IRC to support each answer.