7. A corp seeks to acquire T corp. A transfers 500,000 shares of voting stock and 100,000 shares of non-voting stock to the shareholders of T corp in exchange for all their capital stock. T corp is thereafter a subsidiary of A corp. This transaction qualifies as a: a. "A" reorganization b. "B" (stock for stock) reorganization c. "C" reorganization d. Taxable transaction e. None of the above

7. A corp seeks to acquire T corp. A transfers 500,000 shares of voting stock and 100,000 shares of non-voting stock to the shareholders of T corp in exchange for all their capital stock. T corp is thereafter a subsidiary of A corp. This transaction qualifies as a: a. "A" reorganization b. "B" (stock for stock) reorganization c. "C" reorganization d. Taxable transaction e. None of the above

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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Similar questions

A corporation is undergoing a complete liquidation. It distributes land to an individual shareholder in exchange for all of the shareholder's stock. The land has a fair market value (FMV) of $40,000 and an adjusted basis of $23,000. The shareholder's basis in the corporation's stock is $30,000. Which gain must this shareholder recognize on the distribution?
Q.2. In a complete liquidation, Corporation Z distributes a building with adjusted tax basis of $200,000 and fair market value of $300,000 to its shareholder, Z. The shareholder assumes the liability on the building equal to $325,000. Z has basis in their stock of $50,000. Immediately after this transaction, what is the shareholder’s basis in the building? 275,000 200,000 325,000 300,000
3. X transfers a publicly traded marketable equity security to Y with a date-of transfer price equal to $25. For each of the following transfer provisions [considered independently], identify the affected condition (#1, 2 or 3) for sale accounting and whether the provision prevents sale accounting for the transfer. A) A legal letter included a "would" opinion stating that the security would be beyond the reach of the powers of a bankruptcy trustee of X. Thus, the transferred asset is isolated from X. B) Y may sell the security to a third party. In the event when X exercise a call option to buy back the security, Y may purchase the same security from the open market as a replacement. C) X writes a put to Y, having an exercise price of $29 (Giving Y the right to sell at $29). The asset price is unlikely to rise beyond $28.
3
Please answer completely and question 1,2,3
Question #2 please!
Goose Corporation has a basis of $7,645,000 in the stock of Swift Corporation, a wholly owned subsidiary acquired 30 years ago. Goose liquidates Swift Corporation and receives assets that are worth $6,116,000 and have a basis to Swift of $ 5,351,500. If an amount is zero or there is no gain or loss, enter "0". a. Determine Goose Corporation's recognized gain or loss on the liquidation. Goose recognizes of: . As a result, Goose's basis in the Swift stock is now s b. Determine Goose Corporation's basis in the assets received in liquidation. Goose Corporation has a basis of $ in the assets received in liquidation.
On January 7, 2022, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under § 351. The shareholder's basis, the fair market value, and the built-in gain (loss) of each property are: Shareholder's Fair Market Built in Gain Basis Value or (Loss) Property 1 $471,800 $566,160 $94,360 Property 2 $802,060 $613,340 ($188,720) Net built-in loss ($94,360) Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 45% shareholder when the property is worth $518,980. a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. Martin's basis is Property 1 is a Martin's basis in Property 2 is a basis of $ basis of $ b. Compute Martin's realized and recognized loss on the liquidating distribution of Property 2. Martin has a realized loss of $ and a recognized loss of $
5. how much is the goodwill/(gain from bargain purchase) at the date of acquisition? 6. how much is the total assets at the date of acquisition?
T holds two business assets, X (with a basis of 30 and a value of 120) and Y (with a basis of 70 and value of 50). T also has outstanding debt of $40 (held by C). T is wholly owned by A whose basis for his T stock is 50 (with a value of $130). Acquiring corporation P will acquire T’s assets in what is assumed to be a qualified section 368 reorganization. If T merges into P for $65 of P stock and $65 in cash, which cash and stock are distributed to A upon the surrender of A’s T shares; and P assumes T’s debt to C. Describe the consequences of the reorganization transaction to T, T’s shareholder A & P. a) Transferor corporation (T) b) Transferor Corporation’s shareholder (A) c) Acquiring Corporation (P)
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?
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