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- VishnuDoes James have income, gain or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. What is James’s basis in TOBY, INC. stock? Does Jenna have income, gain, or loss on the transaction in which she receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss.Randall Bradwick's share of his S corporation net operating loss is $230,000 this year. His stock basis is $200,000, and he loaned the corporation $180,000, which created a debt basis for him of $180,000. Mr. Bradwick does not materially participate in the corporation or its activities. He does not meet the rental income exception. From other sources, Bradwick reports $100,000 of passive income. How much of the corporate net operating loss can Bradwick deduct?
- A non-stock corporation was created and operated by Ana, Bena, Carla, Dolly,and Erica. After 10 years of operation, Ana, Bena, Carla, and Dolly surrenderedtheir shares to Erica. Erica became the sole owner of the Corporation. Ericawants to convert the Corporation into a ONE PERSON CORPORATION. Is Ericaallowed by law to convert the corporation to ONE PERSON CORPORATION?Yes or No? Explain.Mary is the sole shareholder of corporation ABCD. She would like to use some of the profit of the business for personal use. Each of the following describes a legal way for Mary to withdraw funds from ABCD except: (a) Mary pays her personal use from the corporation's funds, (b) Mary receives taxable wages from ABCD, (c) ABCD lends fund to Mary with reasonable interest rate and repayment schedule, (d) ABCD pays Mary a taxable dividend.Discuss planning opportunities with organizing a corporation. Instructions Original Post Prompt: Sarah incorporates her small business but does not transfer the machinery and equipment the business uses to the corporation. Subsequently, the machinery and equipment are leased to the corporation for an annual rent. What tax reasons might Sarah have for not transferring the machinery and equipment to the corporation when the business was incorporated?
- a) A minority shareholder who has a drag-along right is entitled to: sell her shares to the majority shareholders at a pre-agreed price. buy the shares of the majority shareholders at a pre-agreed price. sell her shares along with and at the same terms and conditions as the majority shareholders. force other shareholders to sell their shares along with her if certain conditions are met. None of the above. b) The purpose of a negative pledge on the borrower's assets in an unsecured bank loan agreement is to ensure that the loan is senior to other loans of the borrower. ensure that the loan is subordinated to other loans of the borrower. prevent the borrower from issuing any bonds in the future. ensure that the borrower cannot subsequently take up other loans with a different lender, securing the subsequent loan with the borrower's assets. ensure that the borrower cannot subsequently lend money to other firms without insisting on collaterals to secure the loan.Jan is the sole shareholder of Jan Ltd. Summer is the sole shareholder of SKY Co. Both of the companies are CCPCs. Jan and Summer will amalgamate their corporations as per Section 87(1) on July 21st, forming JS Ltd. Jan's shares in Jan Ltd. have an ACB of $1,000 and a fair market value of $24,500. Summer's shares in SKY Co. have an ACB of $1,500 and a fair market value of $45,500. Which of the following will apply with respect to the planned amalgamation? Multiple Choice The ACB of Jan's and Summer's shares in JS Ltd. will be $24,500 and $45,500, respectively. JS Ltd.'s first taxation year will commence on July 22ndA bylaw of Betma Corporation provides that no share- holder can sell his shares unless he first offers them for sale to the corporation or its directors. The bylaw also states that this restriction shall be printed or stamped upon each stock certificate and shall bind all present or future owners or holders. Betma Corporation did not comply with this latter provision. Shaw, having knowledge of the bylaw restriction, nevertheless purchased twenty shares of the corporation’s stock from Rice, without having Rice first offer them for sale to the corporation or its directors. When Betma Corporation refused to effectuate a transfer of the shares to her, Shaw sued to compel a transfer and the issuance of a new certificate to her. What result?
- Kimball, a partner in a one-office firm, inherits 15 shares of Spotless Housekeeping Services stock. The stock has a market value of $25 per share; there is a ready market for them; and there are 300,000 shares outstanding. Spotless is an audit client of the firm, and Kimball does no work or consulting for Spotless engagements. Which of the following is CORRECT regarding Kimball receiving this stock and maintaining the firm's independence with Spotless? As long as Kimball does not work on the engagements for Spotless, nothing need be done. If he works on the engagements for Spotless, then the shares must be promptly sold to preserve the firm's independence. Since the shares are worth only $375 and they were inherited, nothing need be done. If Kimball transfers the shares to a blind trust where he is the beneficiary, independence with Spotless will not be impaired. The shares must be sold within 30 days of their receipt.Sam owns 50 Class A non-voting shares of ABC Co. Leslie owns 50 Class B voting shares of ABC Co. Who has control of ABC Co? A) Sam B) Both Sam and Leslie C) Leslie D) Neither Sam nor Leslie Odinie has been an employee of ABC Co for the last 5 years. Recently, the CFO has asked all employees to incorporate and advised that their pay will now be received through their corporation instead. Odinie is a Canadian resident individual and is interested in what type of corporation his new company will be. It is established in Canada. A) Specified investment business B) Public corporation C) Personal services business D) Other corporationIn the following case, identify all the violations of the rules of conduct of the Code of Professional Ethics, indicate the rule and explain why it was violated. Carmen and Carlos formed a corporation called CPA al servicio. 50% of all issued shares are divided between the two owner shareholders. Carmen in CPA and member of the AICPA Carlos is an appraiser. They announce themselves as members of the AICPA. They were hired to do an audit, the payment of which will be based on the findings of the CPA. Carmen commented with another CPA colleague on important aspects of the case to be audited. During the audit Carmen found deviations from the Generally Accepted Accounting Principles. Carmen gave an opinion in the report of her "unqualified without qualification."102 Integrity and objectivity } 201 General standards } 202 Compliance with standards } 203 Accounting Principles } 301 Confidential customer information } 302 Contingency expenses } 501 Acts of discredit } 502 Promotion or…