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 $ b. Determine Goose Corporation's basis in the assets received in liquidation. Goose Corporation has a basis of $ in the assets received in liquidation.

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 $ b. Determine Goose Corporation's basis in the assets received in liquidation. Goose Corporation has a basis of $ in the assets received in liquidation.

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

Ee 350.
Examine how do you treat the following items when X Ltd. is merging with Y Ltd. on 1st January 2023 on the assumption: A. Condition u/s 2(1B) and u/s 72A does not satisfy B. Condition u/s 2(1B) satisfy but conditions u/s 72A not satisfy C. Conditions u/s 2(1B) and u/s 72A are satisfied Other Information of X Ltd.: (i) Business Profits (before adjusting losses and expenses) *60,000 (ii) Expenses on merger *2,00,000 (iii) VRS Compensation (Paid during 2020-21) *4,00,000 (iv) Sale consideration of non-depreciable capital assets *20,00,00 (v) Indexed cost of acquisition of non-depreciable capital assets *12,00,000 (vi) Sale consideration of depreciable assets *10,00,000 (vii) WDV of depreciable assets *7,00,000 (viii) Non-speculation business loss relating to 1994-95 *3,00,000 (ix) Unabsorbed depreciation relating to 2020-21 1,50,000 (x) Long term Capital loss relating to 2021-22 *2,00,000 Business profits of Y Ltd. (before adjusting losses and expenses) ₹30,00,000 and long term capital…
S1: A stock acquisition occurs when one corporation pays cash, issue stock, orissues debt for all or part of the voting stock and of another company; and the acquired company dissolves and ceases to exist as a separate legal entity. S2: In an asset acquisition, the books of the acquired company are closed out and its assets and liabilities are transferred to the books of the acquirer. A. Both statements are correct.B. Only S2 is correct.C. Only S1 is correct.D. Both statements are incorrect.
t15
Pursuant to a complete liquidation, Carl Corporation distributes to its shareholders real estate held as an investment (basis of $650,000, fair market value of $775,000). a. Compute the gain or loss recognized by Carl Corporation on the distribution if no liability is involved. b. Compute the gain or loss recognized by Carl Corporation on the distribution if the real estate is subject to a liability of $700,000. c. Compute the gain or loss recognized by Carl Corporation on the distribution if the real estate is subject to a liability of $895,000.
N3. Account
Which of the following statements about post-acquisition earnings is incorrect? А. They are the earnings produced subsequent to the acquisition date by members of the group. В. They form part of earnings of the economic entity. С. They are eliminated against the parent's earnings, in a similar fashion to pre- acquisition earnings. D. They form part of earnings of the economic entity and they are eliminated against the parent's earnings, in a similar fashion to pre-acquisition earnings.
Hippo Co. is a holding company. It holds all the shares of Opco. Shareholder H holds all the shares of Hippo Co. What should Opco be directed to do prior to its sale in order to minimize taxable capital gains? a. Transfer all assets to Hippo Co. before sale. b. Transfer all shares in Opco to Shareholder H prior to the sale c. Transfer all the shares of Hippo Co. to shareholder H prior to the sale. d. Pay a tax-free dividend to Hippo Co. from Opco prior to the sale
X Corp. assets FMV $2,500,000; Basis $500,000. X Corp. completely liquidates and distributes its assets to A, the sole Shareholder. Shareholder A’s stock basis is $250,000. Is a formal plan of dissolution required? §__________ What Form is required for X to file to report the liquidation? ___________ Compute Corporate gain/loss indicate amount and category ___________________________________________________________________________ _____________________________________________________________________ ________________________________________________________________________ Code Section for Part c §__________ Compute Corporate Tax $___________________________________________________ ________________________________________________________________________ Compute A’s gain/loss. $___________________________________________________ ________________________________________________________________________ Code Section for Part f §__________ Assume A is in the maximum tax…
P Ltd bought 80% of S Ltd’s equity shares on 1 January 2016. On the date of the purchase of S Ltd's shares, among other things, S Ltd's statement of financial position contains the following: $ Retained profit 72,000 Tangible non-current assets Cost 288,000 Fair value 360,000 On the date of acquisition (of S Ltd's shares) by P Ltd, S Ltd's assets were not revalued to fair value. It is part of S Ltd's accounting policy to depreciate non-current assets on a straight-line basis for 10 years. The income statements of P Ltd and S Ltd for the year ended 31 December 2020 are as follows: P Ltd S Ltd $ $ Revenue 240,000 168,000 Cost of sales 144,000 24,000 Gross profit 96,000 144,000 Expenses 12,000 14,400 Depreciation and amortization Operating profit 24,000 28,800 60,000 100,800 9,600 50,400 Income tax 2,400 Net profit 98,400 Reserves (brought forward) Reserves (carried forward) 240,000 168,000 290,400 266,400 Note: P Ltd and S Ltd are considered to be in the same group for the purpose of…
a. Determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of financial position. b. Determine the percent of noncontrolling interest ownership in S Company as of December 31, 2019.
Assuming X and Y Corporation entered into a merger resulting to Y corporation being dissolved. X had inventories of goods amounting to P1,000,000.00 and Y had P600,000.00. Assume that there is available input tax unused by X and Y. Requirement: How will the inventories be treated in relation to business taxation?