Which of the following statements regarding transfers of property or services is true? O O For a transfer of property to a corporation, no gain is recognized by the taxpayer if the A. transferred property is encumbered with liabilities in excess of the taxpayer's basis in th property. 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

Which of the following statements regarding transfers of property or services is true? O O For a transfer of property to a corporation, no gain is recognized by the taxpayer if the A. transferred property is encumbered with liabilities in excess of the taxpayer's basis in th property. 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please proivide tax implications at both the Corporate and Shareholder level for each response. Add IRC to support each answer.
In order to be eligible to exclude gain on the sale of a principal residence, the taxpayer must meet which of the following tests? ○ Ownership test ○ Use test and ownership test Business use test ○ Use test
When an entity uses the fair value model, changes in the fair values of investment property are recognized in profit or loss directly in equity recognized in other comprehensive income not recognized
Which statement is incorrect? a. S corporations are treated as corporations under state law. b. S corporations are treated as partnerships for Federal income tax purposes. c. Distributions of appreciated property are taxable to the S corporation. d. All of these choices are correct.
A corporation that transfers restricted stock to an employee as compensation may deduct the stock's fair market value in the year of transfer even if the employee doesn't recognize the value as gross income in the year of transfer. T/F also explain the reason, thanks.
COMPREHENSIVE PROBLEMS a connect Select problems are available in Connect®. 56. Several years ago, your client, Brooks Robertson, started an office cleaning service. His business was very successful, owing much to his legacy as the greatest defen- sive third baseman in major league history and his nickname, “The Human Vacuum Cleaner." Brooks operated his business as a sole proprietorship and used the cash method of accounting. Brooks was advised by his attorney that it is too risky to op- erate his business as a sole proprietorship and that he should incorporate to limit his liability. Brooks has come to you for advice on the tax implications of incorpora- tion. His balance sheet is presented below. Under the terms of the incorporation, Brooks would transfer the assets to the corporation in return for 100 percent of the company's common stock. The corporation would also assume the company's liabilities (payables and mortgage). Balance Sheet Adjusted Basis FMV Assets Accounts receivable…
In an agreement involving the right to acquire property, which of the following are conditions that must be met in order for the IRS to accept the purchase price set in the agreement as a valid measurement of the value of the property being acquired? The purchase price must be determined by an independent appraisal submitted with an informational gift tax return regardless of the value of the property. The agreement must be a bona fide business arrangement. The agreement cannot be an attempt to transfer the property to a family member for less than full and adequate consideration. The terms of the agreement must be comparable to those that would be entered into by persons in an arm's-length transaction A) I and III B) II and IV C) I and IV D) II, III, and IV
An individual's current year capital loss from investment property not offset against capital gains and ordinary income is carried forward indefinitely. True or false
Which of the following items cannot be deducted in the determination of taxable income for a corporation? Net Capital Losses. The lifetime capital gains deduction Charitable contributions. Dividends from taxable Canadian corporations.
11 Which of the following events will be considered to be a disposal for capital gains tax purposes (1) The selling of shares in a subsidiary (ii) Expropriation of property (iii) The transfer of an asset due to failure to pay debt (iv) The granting of an option by a company to acquire a share in it (v) The obtaining of any credit from a person
1. When a business ceases to operate and its inventories are disposed of a gain on the inventories will be treated as a capital gain unless an election is made by the selling taxpayer True or False 2. When a business ceases to operate and its accounts receivable are disposed of with the other business assets any loss on the receivables will be treated as a capital loss unless a joint election is made by the purchaser and seller. True or False
when a C-Corp distributes appreciated assets to its shareholders should recognize in in the corporate return a taxable profit on the appreciation?