Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percentof the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases:InventoryBuildingLandTotalFMV$ 10,00050,000100,000$ 160,000Adjusted TaxBasis$ 4,00030,00050,000$ 84,000The fair market value of the corporation's stock received in the exchange equaled the fair market value of the assets transferred to thecorporation by Ramon.Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.Required:a. What amount of gainloss does Ramon realize on the transfer of the property to his corporation?b. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation?c. What is Ramon's basis in the stock received in the new corporation?Required AComplete this question by entering your answers in the tabs below.Answer is complete but not entirely correct.Required B Required C

Realizing and recognizing gains or losses are two different things: realizing is when a gain or loss…

Answered: FMV $ 10,000 50,000 100,000 $ 160,000…

FMV $ 10,000 50,000 100,000 $ 160,000 Adjusted Tax Basis $ 4,000 30,000 50,000 $ 84,000 lue of the corporation's stock received in the exchange equaled the fa

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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LL %24 The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as BALANCE SHEETS December 31, 2020 Patrick Sean Cash Accounts receivable (net) Inventories Plant and equipment (net) Investment in Sean 24 000'9 000 9 000 00000 000 0 000 $1,400,000 $ 418,000 Total assets 82,000 Accounts payable Long-term debt Common stock ($10 par) Additional paid-in capital Retained earnings 000'8 000 306,000 262,000 000't78 Total liabilities and shareholders' 000 Additional Information: • On December 31, 2020, Patrick acquired 100 percent of Sean's voting stock in exchange for $454,000. • At the acquisition date, the fair values of Sean's assets and liabilities equaled their carrying amounts, respectively, except that the fair value of certain items in Sean's inventory were $20,000 more than their carrying amounts. In the December 31, 2020, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?…
20 Skipped Assume that Puritan Corporation operates in an industry for which NOL carryback is allowed. Puritan Corporation reported the following pretax accounting income and taxable income for its first three years of operations: 2023 $ 358,000 2024 (503,000) 2025 753,000 Puritan's tax rate is 25% for all years. Puritan elected a loss carryback. As of December 31, 2024. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback. What would Puritan report as net income for 2025? Multiple Choice $564,750 $141,198 $611,812 $613,804
The tax rates for a particular year are shown below: Taxable Income $0 - 50,000 50,00175,000 75,001 100,000 100,001 335,000 What is the average tax rate for a firm with taxable income of $155,456? 25.92% 20.88% 28.41% 39.00% Tax Rate 15% 25% 34% 39% 28.23%
ABC Corporation, a foreign corporation sold its 100,000 shares with par value of P 15 per share to CBA Corporation for P 20 per share. How much is the capital gains tax of ABC Corporation? P 12,000 P 300,000 P 50,000 P 75,000
CH Required information Sovran Financial Corporation reported net income of $154 mlion for the current year (tax rate 25%). Its capital structure consksted of the folkowing. Unchanged during the year Common Stock Jan. 1 60 million common shares were outstanding (S amounts in milions, except per share amount) Basic EPS: Netincome $154 $2.57 60 Shares outstanding 0:00/1:23 720p 1X CC O Knowledge Check 01 Greene Corporation reported net income of $300,000. The company had 60,000 common shares outstanding, which remained unchanged during the current year. What is the company's basic EPS? (Round your answer to 2 decimal places.) Basic EPS IMG-1894.jpg IMG-1895.jpg IMG-1896.jpg --pdf 490CA57F-89F1....pdf
17. 2022 Corp Z Cash Method Taxpayer – (Corp. Aggregate Receipts < $27 Mil.) 100% Owned by Shareholder A Business Income - 1200000 Business Expenses - 160000 NYS Bond Interest - 2000 Dividend received from 75 % owned Corporation - 8000 Reasonable Compensation - 5500000 Compensation of Family Members Not Active in the Company - 150000 Capital Loss – (5000) Interest Expense paid to Bank - 250000 §179 Depreciation Tractor - 25000 Bonus Depreciation Heavy Truck - 50000 Questions: a. What is taxable income? _______________ Show calculations.
Problem 6Ellen, the following passive income at the end of the taxable year 2020: Within the Phil. Without the Phil.1. Dividend income P20,000 P30,0002. Interest income 15,000 25,0003. Royalty income 50,000 80,0004. Lotto winnings 10,000 100,0005. Capital gain: sale of shares stocks (unlisted) 150,000 REQUIRED: Compute the total Income tax due on passive income of the taxpayer:1. Assuming, Ellen is resident citizen __________________ 2. Assuming, Ellen is non-resident alien engaged in trade and business _________________ 3. Assuming, Ellen is non-resident alien not engaged in trade and business_________________
Q4 Company P’s net profit for Year 1 is 4 600 000. capital structure of P comprising 3 000 000 ordinary shares and 500 000 equity-classified preference shares in issue throughout Year 1. Each preference share provides for a cumulative discretionary dividend each year of R1.20; and preference shares have no further rights to participate in dividends with ordinary shares. There are no tax effects on payment of preference dividends.Calculate the basic EPS
25. Calculate the amount of corporate income tax due and the net income after taxes (in $) for the corporation. (Assume the corporate tax rate is 21%.) Таxable Tax Net Income Name Income Liability after Taxes Corporation 3 $13,450,000 $ $
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Problem4 Current E & P $400,000 an Accumulated E & P 200,000. During the year Zeta distributes $800,000 to shareholders(A & B-$400, 000 to each) A has a basis in his stock $50,000 and B has a a basis of 200,000 Calculate the effect of the distribution on A and B
1 - X Iron and Steel Industry and Trade Joint Stock Company of 2018 year corporate tax amount is 70.000 TL and the joint stock company has paid 50.000 TL of this amount through the bank and the remaining 20.000 TL has been covered from the prepaid tax account.Based on this information, which of the following statements is false?A) 102- The banks account has been credited with TL 50,000.B) 371- Prepaid Taxes and Other Liabilities Account of Profit for the Period 20,000 has been credited.C) 370-Prepaid Taxes and Other Liabilities of the Period Profit Hs 70.000 is debited.D) 360 Taxes Payable and Funds Account 70,000 has been credited.E) 193- Prepaid Taxes and Funds account is credited with 20.000 TL.