2022-10-25 (2)

How do I find the tax basis?

Dengar

Ashvin

How do I find the recognized gain or loss and the corporate-level tax?

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company’s tax accounting balance sheet. The relevant information is summarized as follows: Note: Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.   FMV Adjusted Tax Basis Appreciation Cash $ 10,000 $ 10,000   Receivables 15,000 15,000   Building 100,000 50,000 50,000 Land 225,000 75,000 150,000 Total $ 350,000 $ 150,000 $ 200,000         Payables $ 18,000 $ 18,000   Mortgage* 112,000 112,000   Total $ 130,000 $ 130,000   * The mortgage is attached to the building and land. Ernesto was asking for $400,000 for the company. His tax basis in the BLI stock was $100,000. Included in the sales price was an unrecognized customer list valued at $100,000. The unallocated portion of the purchase price…

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.)     FMV Adjusted Tax Basis Appreciation Cash $ 6,000 $ 6,000   Receivables 9,000 9,000   Building 114,000 57,000 57,000 Land 248,000 78,000 170,000 Total $ 377,000 $ 150,000 $ 227,000         Payables $ 11,000 $ 11,000   Mortgage* 134,000 134,000   Total $ 145,000 $ 145,000     * The mortgage is attached to the building and land. Ernesto was asking for $574,000 for the company. His tax basis in the BLI stock was $190,000. Included in the sales price was an unrecognized customer list valued at $190,000. The unallocated portion of the purchase price…

Please help me

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: Note: Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign. Cash Receivables Building Land Total Payables Mortgage Total FMV 12,000 19,000 77,000 165,000 $ 273,000 $ 22,000 87,000 $ 109,000 Adjusted Tax Basin $ 12,000 19,000 38,500 105,000 $ 174,500 Gain or loss recognized Corporate-level tax $ 22,000 87,000 $ 109,000 Appreciation 38,500 60,000 $ 98,500 *The mortgage is attached to the building and land. Ernesto was asking for $402,000 for the company. His tax basis in the BLI stock was $100,000. Included in the sales price was an unrecognized customer list valued at $100,000. The unallocated portion of the purchase price ($138,000)…

Gadubhai

Vishnu

Kk.218.

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.) Ad justed Tax Basis $ 6,000 9,000 56,500 139,000 $ 210,500 PMV Appreciation Cash Receivables Building $ 6,000 9,000 113,000 239,000 ६ 367,000 56,500 100,000 $ 156,500 Land Total Payables Mortgage $ 12,000 132,000 $ 144,000 $ 12,000 132,000 $144,000 Total * The mortgage is attached to the building and land. Ernesto was asking for $493,000 for the company. His tax basis in the BLI stock was $150,000. Included in the sales price was an unrecognized customer list valued at $150,000. The unallocated portion of the purchase price ($120,000) will be recorded as goodwill. Assume Ernesto…

Required information Problem 19-57 (LO 19-4) (Algo) [The following information applies to the questions displayed below.] Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: Adjusted Tax Basis $ 31,500 17,000 Cash Receivables Building Land Total Payables Mortgage* Total FMV $ 31,500 17,000 113,500 273,000 $435,000 56,750 91,000 $ 196,250 $22,300 $ 22,300 182,250 182,250 $ 204,550 $ 204,550 Appreciation 56,750 182,000 $ 238,750 *The mortgage is attached to the building and land. Ernesto was asking for $450,200 for the company. His tax basis in the BLI stock was $120,000. Included in the sales price was an unrecognized customer list valued at $138,000. The unallocated portion of the purchase price ($81,750) will be recorded as…

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: \table[[,,Adjusted Tax,],[Cash,\table[[FMV],[$10,500

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows:     FMV Adjusted Basis AppreciationCash$25,500 $25,500 Receivables 23,200 23,200 Building 133,000 66,500 66,500Land 272,250 90,750 181,500Total$453,950 $205,950 $248,000 Payables$23,000 $23,000 Mortgage* 150,000 150,000 Total$173,000 $173,000     * The mortgage is attached to the building and land. Ernesto was asking for $568,950 for the company. His tax basis in the BLI stock was $148,000. Included in the sales price was an unrecognized customer list valued at $196,000. The unallocated portion of the purchase price ($92,000) will be recorded as goodwill. (Negative amounts should be indicated by a minus sign.)

Required information [The following information applies to the questions displayed below.] Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: Cash Receivables Building Land Total Payables Mortgage* Total FMV $ 28,800 17,600 Adjusted Tax Basis $ 28,800 Appreciation 17,600 145,600 252,000 72,800 84,000 $ 444,000 $ 203,200 72,800 168,000 $ 240,800 $ 21,600 126,800 $ 21,600 126,800 $ 148,400 $ 148,400 * The mortgage is attached to the building and land. Ernesto was asking for $546,100 for the company. His tax basis in the BLI stock was $163,000. Included in the sales price was an unrecognized customer list valued at $148,000. The unallocated portion of the purchase price ($102,500) will be recorded as goodwill. Note: Negative amounts…

puntant (CPA) named Orville Maloney works for a mid-sized accounting firm preparing tax returns for various clients. One of his clients, a small business ming a significant deduction that Orville knows is not fully supported by the tax emma Orville faces is whether he should comply with his client's request to potentially saving the client a substantial amount of money, but violating tax ional integrity and adherence to ethical standards. Open Sans you will identify and research a tax case involving an ethical tax issue. (Examples nterest in tax practice, multiparty representation conflict, contingent fee tax so on. Refer to the textbook for examples for other similar examples.)

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows:     FMV   Adjusted Basis   Appreciation Cash $ 14,500   $ 14,500       Receivables   18,800     18,800       Building   102,500     51,250     51,250 Land   260,250     86,750     173,500 Total $ 396,050   $ 171,300   $ 224,750                   Payables $ 19,100   $ 19,100       Mortgage*   159,000     159,000       Total $ 178,100   $ 178,100           * The mortgage is attached to the building and land.  Ernesto was asking for $445,700 for the company. His tax basis in the BLI stock was…

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows:     FMV   Adjusted Basis   Appreciation Cash $ 14,500   $ 14,500       Receivables   18,800     18,800       Building   102,500     51,250     51,250 Land   260,250     86,750     173,500 Total $ 396,050   $ 171,300   $ 224,750                   Payables $ 19,100   $ 19,100       Mortgage*   159,000     159,000       Total $ 178,100   $ 178,100           * The mortgage is attached to the building and land.  Ernesto was asking for $445,700 for the company. His tax basis in the BLI stock was…

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: Cash Receivables Building Land Total Payables Mortgage Total FMV $ 28,500 20,400 127,000 233,250 $ 409,150 Gain or loss recognized $ 24,200 174,800 Adjusted Tax Basis $ 26,500 20,400 63,500 77,750 $190,150 $ 24,200 174,800 $ 199,000 $ 199,000 Appreciation 63,500 155,500 $ 219,000 *The mortgage is attached to the building and land. Ernesto was asking for $496,950 for the company. His tax basis in the BLI stock was $146.000. Included in the sales price was an unrecognized customer list valued at $189,000. The unallocated portion of the purchase price ($97,800) will be recorded as goodwill. Note: Negative amounts should be indicated by a minus sign. Problem 19-57 Part b (Algo) b. What…

H2.

What is the correct answer in problems number 2&3 below? Provide a computation and explanation.

Whilst looking at the income tax returns applicable to corporate entities, Jackie was curious why there is a need for tax-exempt entities to still file for their ITR given that they are already exempted. Being a lamb to your friend, which of the following would best provide reason for such?   A. for assessment of the correctness of mathematical computations made by taxpayer B. for comparison of figures reported on their financial statements C. for conversion of the supposed tax burden to filing burden D. for possible tax exposures from the conduct of unrelated activities

Performing Accounting Research When a company is uncertain as to the disposition of a tax position, it becomes a question as to the amount of tax benefit to recognize in the financial statements. Resolution of tax positions may take years. A company is trying to determine how to estimate the benefit to recognize related to an anticipated tax settlement with a taxing authority. What guidance is available in the Codification in reporting this information? FASB ASC 0 0 Check X x 0

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: 24,200 Adjusted Tax Basis $ 24,000 Appreciation Cash FMV $ 24,000 Receivables 24,200 Building 112,000 56,000 56,000 Land 238,500 79,500 159,000 Total $ 398,700 $ 183,700 $ 215,000 Payables Mortgage* $ 25,600 128,300 $ 25,600 128,300 Total $ 153,900 $ 153,900 *The mortgage is attached to the building and land. Ernesto was asking for $504,100 for the company. His tax basis in the BLI stock was $144,000. Included in the sales price was an unrecognized customer list valued at $183,000. The unallocated portion of the purchase price ($76,300) will be recorded as goodwill. Note: Negative amounts should be indicated by a minus sign. a. What amount of gain or loss does BLI recognize if the…