Monica contributes appreciated property (.e, Adjusted Basis of $65,000 and Fair Market Value of $100,000) to her business entity in a transaction whichqualifies for nonrecognition of galin. Monica's ownership interest in the business entity is sbety percent (60%). The business entity later sells the appreciatedproperty for $110,000. The property is not deprecdable. If the entity is a Regular (9 Corporation, Monica's Gross Income is increased from the sale of theproperty by the Corporation by $41,000,O TrueFalseQUESTION 5Actual Dividends pald to shareholders of a Regular (C) Corporation result in Double Taxation. Likewise, Constructive Dividends (eg. Personal use of corporateproperty by a shareholder, etc.) result in Double Taxation.O FalseO True

As per our guidelines we provide solution to the one question only and you have asked two multiple…

Actual Dividends paid to shareholders of a Regular (O Corporation result in Double Taxation. Likewise, Constructive Dividends (eg. Personal use of corporate property by a shareholder, etc.) result in Double Taxation. O False O True

Actual Dividends paid to shareholders of a Regular (O Corporation result in Double Taxation. Likewise, Constructive Dividends (eg. Personal use of corporate property by a shareholder, etc.) result in Double Taxation. O False O True

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

In a transaction qualifying under § 351, Karen transfers the following assets to Kramer Corporation in exchange for all of its stock: equipment (basis $200,000; fair market value $150,000) and land with (basis $75,000; fair market value $100,000). No special elections are made. What is Kramer Corporation’s basis in the equipment?
C Corporation converts to S Corporation when the fair market value of its assets was $100,000 and its basis of those assets was $60,000. Three years later, S Corporation sells those assets for $120,000. What amount of built in gain is subject to S corporation tax at the date of sale?
s
Sam, a sole proprietor, is engaged in a service business. In the current year, Sean incorporates his business by forming Farm Corporation. In exchange for (a) all of its stock (FMV $1,200,000) and (b) Aqua’s note payable of $300,000, Farm Corporation receives Sam’s business assets (basis of $600,000 and fair market value of $1.5 million). a. Does Sean recognize any gain on the incorporation? Explain. b. What basis does Sean have in the Aqua stock? c. What basis does Aqua Corporation have in the assets it receives?
Bridget transferred a piece of land she held personally to her wholly owned corporation using the provisions of ITA 85. The land had an adjusted cost base of $150,000 and a fair market value of $250,000 at the time of transfer. The property was mortgaged for $50,000. As consideration for the transfer, Bridget received cash of $200,000 and preferred shares with a legal stated capital of $10,000. The corporation assumed the mortgage. Which one of the following is the elected transfer price (first) and the adjusted cost base of the preferred shares (second)? a. $150,000 and Nil b. $250,000 and $240,000 c. $250,000 and Nil d. $260,000 and $50,000 Clear my choice
Which of the following is true with respect to the related party rules? a.A disallowed loss on a related party transaction can be used to offset any future gain when the property is sold to an unrelated party. b.Bill sells stock to his sister for a $3,000 loss. Bill can deduct the loss on his tax return. c.A taxpayer's uncle is a related party for purposes of Section 267. d.Under the constructive ownership rules of Section 267, a shareholder owns 10 percent of the stock owned by a corporation in which he or she is a shareholder. e.None of these choices are correct.
Tristan transfers property with a tax basis of $1,160 and a falr market value of $1,720 to a corporation In exchange for stock with a falr market value of $1,160 and $390 In cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $170 on the property transferred. What Is the corporation's tax basis In the property recelved In the exchange? Multiple Cholce $1,720 $1,550 $1,330 $1,160
Casey transfers property with a tax basis of $2,180 and a fair market value of $6,100 to a corporation in exchange for stock with a fair market value of $4,500 and $575 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,025 on the property transferred. Casey also incurred selling expenses of $391. What is the amount realized by Casey in the exchange?
Dog
Lisa sells business property with an adjusted basis of $132,000 to her son, Alfred, for its fair market value of $105,600. If an amount is zero, enter "0". a. What is Lisa's realized and recognized gain or loss? Lisa has a $__________ realized loss of which $___________is recognized. b. What is Alfred's recognized gain or loss if he subsequently sells the property for $145,200? For $85,800? If Alfred sells the property for $145,200, he has a recognized gain of $_______________. If Alfred sells the property for $85,800, he has a recognized loss of $_______________.
Kaylee transfers land to Mer Corporation with a basis of $300,000. The property is worth $700,000. In return, Laylee receives 74% of Mei Corp. stock, worth $400,000. Kaylee owned 11% of Mei stock prior to the transaction above. How much taxable income, if any, does Kaylee have on the transaction above?
Susan incorporates her sole proprietorship by transferring assets with an FMV of $105,000 and an adjusted basis of $100,000 to the corporation for 100% of the stock ($105, 000). Susan has: Group of answer choices All of these. Taxable Loss of $5,000 Unrecognized Loss of $5,000 Recognized Loss of $5,000 None of these.