90% interest Peregrine Corporation acquired Corporation in 2004 at a time when Cliff's book values and fair values were equal to one another. On January 1, 2005, cliff sold a truck with a $45,000 book value to Peregrine for $90,000. Peregrine is depreciating the truck over 10 years using the straight-line method. Separate incomes for Peregrine and Cliff for 2005 were as follows: Peregrine cliff Sales $ 1,800,000 $ 1,050,000 45,000 Gain on sale of truck Cost of Goods Sold (750,000) (285,000)

90% interest Peregrine Corporation acquired Corporation in 2004 at a time when Cliff's book values and fair values were equal to one another. On January 1, 2005, cliff sold a truck with a $45,000 book value to Peregrine for $90,000. Peregrine is depreciating the truck over 10 years using the straight-line method. Separate incomes for Peregrine and Cliff for 2005 were as follows: Peregrine cliff Sales $ 1,800,000 $ 1,050,000 45,000 Gain on sale of truck Cost of Goods Sold (750,000) (285,000)

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter15: S Corporations

Section: Chapter Questions

Problem 4CE

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