4. Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a car (basis of $30,000; fair market value of $40,000) that is subject to a $6,000 liability which Bonnie assumes. Puffin has no accumulated E & P and $70,000 of current E & P from other sources during the year. How much dividend should Bonnic report? a $4,000 b. $6,000 c. $10,000 d. $36,000 e. None of the above

4. Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a car (basis of $30,000; fair market value of $40,000) that is subject to a $6,000 liability which Bonnie assumes. Puffin has no accumulated E & P and $70,000 of current E & P from other sources during the year. How much dividend should Bonnic report? a $4,000 b. $6,000 c. $10,000 d. $36,000 e. None of the above

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 30CE

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Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a car (basis of $30,000; fair market value of $40,000) that is subject to a $7,000 liability which Bonnie assumes. Puffin has no accumulated E & P and $70,000 of current E & P from other sources during the year. How much dividend should Bonnie report? a. $4,000b. $33,000c. $10,000d. $34,000e. None of the above Please show work.
Gamma Corporation distributes land to its sole shareholder, Lisa. The land has a basis to the corporation of $20,000 and a fair market value of $50,000. There is a $35,000 mortgage on the land which the shareholder agrees to assume. Before this distribution, Gamma has current E&P of $5,000 and accumulated E&P of $4,000. How much gain does Gamma Corporation recognize as a result of this distribution? How much dividend income does Lisa recognize as a result of this distribution? What is Lisa’s basis for the land? What is Gamma Corporation’s E&P after the distribution?
5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock. B transfers a tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock. What are the tax consequences to all of the parties? (b) Suppose that in addition to transferring the services contract, A transfers cash of 20. A still receives 50% of the stock. How would this change your answer?
Q1. As of the end of the current tax year, Mad Corp. has accumulated E&P of $31,000 and current E&P of $1,000. At the end of the year, Mad Corp. distributes $50,000 to its sole shareholder, Mary, whose stock basis is $10,000 (before the distribution). What amount of the distribution is treated as a dividend? Q2. As of the end of the current tax year, Mad Corp. has accumulated E&P of $31,000 and current E&P of $1,000. At the end of the year, Mad Corp. distributes $50,000 to its sole shareholder, Mary, whose stock basis is $10,000. What is Mary’s stock basis after the distribution?
5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock. B transfers a tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock. What are the tax consequences to all of the parties? (b) Suppose that in addition to transferring the services contract, A transfers cash of 20. A still receives 5096 of the stock. How would this change your answer? () Suppose instead that in addition to transferring the services contract, A transfers cash of just 1 How would this change your answer?
N1. Account 5. PURSUANT TO A COMPLETE LIQUIDATION IN THE CURRENT YEAR Z CORPORATION DISTRIBUTES TO MOE LAND (FMV $390,000, BASIS OF $425,000) THAT WAS PURCHASED SEVEN YEARS AGO AND HELD FOR INVESTMENT. THAT LAND IS SUBJECT TO A MORTGAGE OF $250,000. MOE OWNS 35% OF Z COPORATION AND HAS A BASIS OF $60,000 IN THOSE SHARES. WHAT ARE THE TAX CONSEQUENCES OF THE LIQUIDATING DISTRIBUTION TO Z CORPORATION AND TO MOE?
Martin Corporation's accumulated E\&P Was($500,000)at the beginning of the year and Martin Corporation reported current E\&P of$200,000this year. Martin distributed$400,000cash to its sole shareholder, Craig, on the last day of the tax year. Craig's basis in his Martin Corporation stock before the distribution is$60,000. 1. How much of the distribution is a dividend to Craig? 2. What is Craig's stock basis in Martin after the distribution? 3. How much of the distribution is a capital gain to Craig? If any of the answers are−0-, do not leave blank. Put−0-
Required information [The following information applies to the questions displayed below.] Wasatch Corporation (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC's deductible DRD in each of the following situations: b. WC's taxable income (loss) without the dividend income or the DRD is $(10,000). Deductible DRD
1. Blue Corporation distributes land and building having a $70,000 adjusted basis and a $200,000 FMV to its sole shareholder, Marina. Blue has current and accumulated E&P exceeding $200,000. The property is subject to a $120,000 mortgage, which Marina assumes. What is the amount of the taxable dividend received by Marina? Group of answer choices $80,000 $70,000 $0 $130,000
The Berry Corporation owns a building with a basis of $40,000 that is subject to a debt of $ 160,000. The FMV of the building is $100,000. Berry distributes the property in a nonliquidating distribution (along with the debt) to Delia, its sole shareholder. What is the amount of the distribution to Delia? a. $80,000. b. $50,000. c. zero. d. $30,000. e. none of the above.
Oreo Corporation has AEP of $5,000 and negative CEP of $18,000. The corporation distributes $11,000 on March 1 to Morris, its sole shareholder, who has a $9,000 basis for his stock which he has held for 6 years. The treatment of the distribution will be Select one: a. $2,000 dividend and a $9,000 capital gain. b. $500 dividend, $9,000 tax free return of stock basis and $1,500 long-term capital gain. c. $2,000 dividend and a $9,000 tax free return of basis. d. $8,000 dividend and a $3,000 return of capital. e. None of the above.
19. Mr. Bosun disposed of various stocks at a total consideration of P400,000 and paid thereon stock transactions tax of P2,000. Aggregate gains realized totaled P98,00 after the stock transaction tax. What is the capital gains tax? * а. РО b. Р 4,900 c. P 9,800 О d.P14,700