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 theproperty 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

To calculate corporation tax basis in property exchange we have to do the following steps: 1. Take…

Answered: Tristan transfers property with a tax…

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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Rock Corporation distributed property with a fair market value of $100,000 and an adjusted basis of $70,000 to Ann, a shareholder of Rock Corporation. Prior to the distribution, Rock Corporation had a deficit in accumulated earnings and profits of $200,000 and current earnings and profits of $20,000. Ann has stock basis in Rock Corporations of $90,000. Assume that Ann is an individual in the 37% tax bracket. Determine Ann’s tax liability for this distribution.
The benefit of an IDIT over a GRAT is: 1. The full value of the remainder interest is a transfer subject to gift tax 2. Most of the grantor's assets are sold to the trust at fair market value, freezing their value to the uncollected balance of the promissory note on the grantor's death. 3. The trust is taxed on the income from trust property at steeply progressive trust income tax rates. 4. An IDIT is a relatively new estate planning tool and thus should be relied upon by taxpayers and practitioners alike. 2 3
Two different trusts have the same grantor and beneficiary. The income tax dueof the first trust is P35,000 before consolidation. Both trusts have already paidthe income tax due on their separate taxable income. Consolidation of the twotrusts resulted to a total income tax due of P184,000. How much is the incometax still due for the second trust?
Casey transfers property with a tax basis of $2,180 and a fair market value of $6,100 to a corporation in exchange for stock with a fair market value of $4,500 and $575 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,025 on the property transferred. Casey also incurred selling expenses of $391. What is the amount realized by Casey in the exchange?
Antoine transfers property with a tax basis of $524 and a fair market value of $647 to a corporation in exchange for stock with a fair market value of $569 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $78 on the property transferred. What is Antoine's tax basis in the stock received in the exchange? Multiple Choice O $647 O $524 $569 O$446.
B Corporation, a calendar year-end, accrual-basis taxpayer, is owned 75 percent by Bonnie, a cash-basis taxpayer. On December 31, 2022, the corporation accrues interest of $4,000 on a loan from Bonnie and also accrues a $15,000 bonus to Bonnie. The bonus is paid to Bonnie on February 1, 2023; the interest is not paid until 2024. How much can B Corporation deduct on its 2023 tax return for these two expenses? a. $15,000 b. $19,000 c. $4,000 d. $0 e. $12,000
Your client has made previous lifetime gifts that have fully exhausted his applicable credit amount. He has asked you to advise him about the tax consequences of transferring his closely held business, valued at $350,000, to his daughter in exchange for a lump sum payment of $300,000. You should inform him that the most important tax implication of this intrafamily business transfer is that A) he will be making a taxable gift of $50,000, because the value of the transferred business exceeds the lump sum payment of $300,000. B) he will be making a taxable gift of $350,000, because the Chapter 14 rules require his retained interest to be valued at zero. C) he will have to include $50,000 minus one annual exclusion in adjusted taxable gifts in his estate tax calculation as an adjusted taxable gift. D) none of the above.
Prepare Natura Company's journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year. a. On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal), dated June 15, that pay 7% interest. b. On September 16, received a check from Remed in payment of the principal and 90 days' interest on the debt securities purchased in transaction a. Note: Use 360 days in a year. Do not round your intermediate calculations. View transaction list Journal entry worksheet < 1 2 On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal), dated June 15, that pay 7% interest. Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit View general journal
A complex trust has taxable income of $29,900 in the current year. The $29,900 includes $5,000 of rental income and $25,000 of taxable interest income, reduced by the $100 personal exemption. The trust makes no distributions during the year. What is the trust’s total tax liability?
At the beginning of the current year, Maple Corporation (a calendar year taxpayer) has accumulated E & P of $140,000. During the year, Maple incurs a $120,000 loss from operations that accrues ratably. On July 1, Maple distributes $85,000 in cash to Asya, its sole shareholder. Assume Asya has sufficient basis for the distribution. How is Asya taxed on the distribution? Of the $85,000 distribution, ($fill in the blank 1) is taxed as a dividend and ($fill in the blank 2) represents a return of capital.
Corporation Compute the amount of charitable contribution deduction for the current year for the following taxpayers. Ignore any percentage limitations. a. Pritizo Corporation owns inventory with a basis of $30,000 and a fair market value of $24,000. A charitable contribution of the Inventory results in a deduction of $S b. During the current year, Lasso Corporation donates a capital asset to Midlands College. Lasso acquired the asset three years ago for $18,000, and the fair market value on the date of the contribution is $32,000. The corporation's charitable contribution deduction is c. Nate Corporation donates a sculpture worth $130,000 to a local museum (a qualified organization), which exhibits the sculpture. Nate had acquired the sculpture in 2005 for $55,000. Nate is allowed to deduct $ Previous Subm Emtal thsfreuctar
The ABC company bought land 2 years ago for $20,000. The FMV, now is $24,000 the corporation still owes $15,000 on this purchase. The company makes a non liquidating distribution of this property to a stockholder who accepted the debt. What is the tax effect to the shareholder of receiving this distribution? A. This is no tax effect to an owner who receives a nonliquidating distribution B. Shareholder must recognize income of $9000 C. Shareholder must recognize income of $20,000 D. Shareholder must recognize income of $24,000

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