Mai is going to contribute the following assets to a business entity in exchange for an ownership interest. Adjusted Basis FMV Cash $100,000 $100,000 Land and building 60,000 95,000 What are the tax consequences of the contribution to Mai if the business entity is a(n): a. Sole proprietorship? b. General partnership? c. Limited partnership? d. C corporation? e. S corporation?

Mai is going to contribute the following assets to a business entity in exchange for an ownership interest. Adjusted Basis FMV Cash $100,000 $100,000 Land and building 60,000 95,000 What are the tax consequences of the contribution to Mai if the business entity is a(n): a. Sole proprietorship? b. General partnership? c. Limited partnership? d. C corporation? e. S corporation?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 28CE

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Mai is going to contribute the following assets to a business entity in exchange for an ownership interest. Adjusted Basis FMVCash $100,000 $100,000Land and building 60,000 95,000What are the tax consequences of the contribution to Mai if the business entity is a(n):a. Sole proprietorship? b. General partnership? c. Limited partnership? d. C corporation? e. S corporation?
a. Determine D'Lake, Green, Divot, recognized gain or loss upon formation of Slicenhook. b. What is D'Lake, Green, Divot, initial tax basis in Slicenhook on January 2, 2022? c. Prepare Slicenhook's opening tax basis balance sheet as of January 2, 2022. Cash__ Land__ Total__ Liabilities__ Tax Capital: D'Lake__ Green__ Divot__ Total__
A derived its income from its self-operated talpakan business. The details of his business for 2021 are as follows: Gross Receipts - P100,000.00 Operating Expenses - P50,000.00 Income taxes withheld in general - P10,000.00 Question: What is A's taxable income? Group of answer choices P40,000.00 P50,000.00 P90,000.00 P100,000.00
ASSUMING THE TAXPAYER IS A CORPORATION, how much is the net taxable income using OSD? a. 792,000 b. 840,000 c. 882,000 d. 930,000
Requirements a. What is Sigma Corporation's income tax liability assuming its taxable income is (a) $82,000, (b) $123,000, and (c) $55 million. b. How would your answers change if Sigma were a personal service corporation? Requirement a. (a) What is Sigma Corporation's income tax liability assuming its taxable income is $82,000. ma Corporation's income tax liability = Requirement a. (b) What is Sigma Corporation's income tax liability assuming its taxable income is $123,000. pted Sigma Corporation's income tax liability Requirement a. (c) What is Sigma Corporation's income tax liability assuming its taxable income is $55 million. (Enter your answer in dollars, not millions.) = Sigma Corporation's income tax liability: = Requirement b. How would your answers change if Sigma were a personal service corporation? (a) Assume its taxable income is $82,000. Sigma Corporation's income tax liability as a personal service corporation : = (b) Assume its taxable income is $123,000.
a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis). Answer is complete but not entirely correct. Ordinary Income Allocated wages Section 179 expense Unadjusted basis of qualified property Distributions Qualified business income Municipal bond income Amount Allocated to Julio Allocated to Milania $ 135,300 $ 67,650 $ 67,650 x 65,000 32,500 32,500 30,000 15,000 15,000 200,000 100,000 100,000 $ 28,000 $ 14,000 $ 14.000 $ 10,000 $ 5,000 $ 5,000 x $ 1,300 $ 650 $ 650
! Required information [The following information applies to the questions displayed below.] Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $10,000 from Falcons Corporation. Sales revenue Cost of goods sold Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to business income) Municipal bond income Government fines Overall net income Distributions Year 1 $ 335,000 (42,000) Year 2 $ 465,000 (65,000) (40,000) (80,000) (30,000) (60,000) (20,000) (40,000) (30,000) (50,000) 10,000 1,700 0 $ 184,700 $ 20,000 18,500 4,400 (3,000) $ 189,900 $ 50,000
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
Match the following. b. c. d. e. b. c. d. e. b. c. d. e. b. c. d. e. - a. - a. - a. - a. S corporation C corporation Limited partnership General partnership a. Contribution of appreciated property to the business entity by an owner is never subject to taxation. Realized gains on the contribution of appreciated property to the entity are not recognized by the contributor when an 80% control requirement is satisfied. Realized losses on the contribution of loss property to the entity are never recognized by the contributor. Realized losses on the contribution of loss property to the entity are recognized by the contributor unless an 80% control requirement is satisfied. b. C. d. e. Basis of ownership interest to the owner is dependent on whether gain or loss is recognized to the owner on the contribution of assets to the business entity.
1. Jay transfers land worth $10,000 to a corporation for all the shares. Jay's adjusted basis in the land was $3,000. Jay's gain realized is and Jay's gain recognized is . 2. What are the requirements for a taxpayer to be able to defer gain on the transfer of assets to a corporation in exchange for stock? (Give all 5 requirements) 3. What or who is treated as a person for tax purposes? Answer in alphabetical order: 4. Sara performs services for a corporation and receives stock worth $20,000 which represents 20% of the stock. Henry transfers land worth $80,000 with a basis of $15,000 for 80% of the stock. Did Sara transfer property to the corporation? a. What is Sara's basis in the land? b What is Sara's holding period in the stock? 5. H transfers land to a corporation Z in exchange for stock. With respect to the stock: a) Who is the transferor b) Who is the transferee
Which of the following statements regarding income recognition is true? A. Owners in a regular corporation realize entity level income at the time the income is earned. B. Owners of an S corporation realize entity level income in the tax year in which the S corporation's year ends. C. Partnership income is recognized in the year in which it is distributed to the partners. D. Sole proprietorship income is recognized at the time the income is distributed to the owner.
If you were seeking an entity with the most favorable tax treatment regarding (1) the number of owners allowed, (2) the flexibility to select your accounting period, and (3) the availability of preferential capital gains rates when selling your ownership interest, which entity should you decide to use? A. C corporation. B. Sole proprietorship. C. Partnership. D. S corporation.