Pursuant to a complete liquidation, Carrot Corporation distributes to its shareholders real estate held as an investment (basis of$1,066,000, fair market value of $1,385,800).a. Determine the gain or loss recognized by Carrot on the distribution if no liability is involved.If no liability is involved, Carrot has a recognizedof $on the distribution.b. Determine the gain or loss recognized by Carrot on the distribution if the real estate is subject to a liability of $1,172,600.If the real estate is subject to a liability of $1,172,600, Carrot has a recognizedof $C.Determine the gain or loss recognized by Carrot on the distribution if the real estate is subject to a liability of $1,492,400.If the liability were $1,492,400, Carrot's recognizedon the distribution would be

a. A corporation recognises both gains and losses at liquidation distribution as if it is sold at…

Answered: Pursuant to a complete liquidation,…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges

Section: Chapter Questions

Problem 32P

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An individual contributes property with an FMV in excess of basis to a corporatioin exchance for stock. The property is subject to a mortgage. In each of the followiinciances determine the basis obnestock in the hands of the shareholder and the bacof the propertycontributed in the hands of the corporation. Assume that the 80 ait.I meta. The property is subjoct to a morteage that is less than basis, and the corporatioassumes the morezec.o. The property is subicct to a morteage that is more than basis. and the corporatio:assumes the mortgage.
Ee 350.
Please See attached.
1. When goodwill is acquired by an investor in an associate, the amortization of goodwill is: A. spread evenly across the useful life of the investment; B. not permitted; C. included in the determination of the investor’s share of the associate’s profit or loss; D. included in the revaluation of the investment. 2. Ginowan Limited acquired a percentage of shares in Juliano Limited for P18 000. Gunawan Limited has no other investments. At the date on which it became an associate, Juliano Limited had the following equity: Share capital P50 000 Retained earnings P40 000 At the end of the financial year following the investment, Juliano Limited generated a profit of P6 000. After applying the equity method of accounting, Gunawan Limited will have the following carrying amount for the investment: A. P19 200 B. P18 000 C. P16 800 D. P9 200.
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). b. What amount of ordinary income and separately stated items are allocated to them for year 2 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis).
Under illinois corporation plan of liquidation the solve this question general accounting
Diamond Corporation uses the fair value model of accounting for its investment property. The fair values of its property were: December 31, 2020, $ 180,000 and December 31, 2021, $ 195,000. At December 31, 2021, Diamond should Select one: a. report a gain of $ 15,000 in other comprehensive income. b. recognize a gain of $ 15,000 in income. c. defer the gain until the property is sold. d. do nothing [ignore it].
Gaston Corporation distributes § 1245 property as a dividend to its shareholders. The property's fair market value is $813,600, and the adjusted basis is $772,920. In addition, the amount of the recapture potential is $77,292. What is the amount and character of Gaston's gain or loss? As result of the distribution, Gaston recognizes of
Viktor exchanges stock (adjusted basis $19,000, FMV $26,800) and real estate (adjusted basis $19,000, FMV $46,000) held for investment for other real estate to be held for investment. The real estate acquired in the exchange has a suggested FMV of $70,200. Required: a. What are Viktor's realized and recognized gain or loss? b. What is the basis of the acquired real estate? a a b. Realized gain No gain or loss Realized gain Realized loss Recognized gain Amount
Q.2. In a complete liquidation, Corporation Z distributes a building with adjusted tax basis of $200,000 and fair market value of $300,000 to its shareholder, Z. The shareholder assumes the liability on the building equal to $325,000. Z has basis in their stock of $50,000. Immediately after this transaction, what is the shareholder’s basis in the building? 275,000 200,000 325,000 300,000
Ef 65.
Sissoon Inc exchanged a business asset for an investment asset Both assets had a $620,000 appraised FMV Sisoons book basis in the business asset was $518,900 and it's tax basis was $443,400. Compute Sissoons book and tax gain if the business asset and investment asset were like-kind properties for tax purposes Determine Sissoons book and tax basis of the investment asset acquired in the non taxable exchange properties for tax purposes. compute Sissoons book and tax gain if the business asset and investment asset were not like king properties for tax purposes. Determine Sissoon's book and tax basis of the investment asset aquired in the taxable exchange.

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