No chat gpt or AI Question:512Which of the following is not a required characteristic of aqualifying Section 351 transaction?A. If more than 20 percent of the dock is transferred forservices, a property must also be transferred by theservice provider.B. Gain may be recognized if the transferor receivessomething other than stock.C. The transferors must control the corporation after thetransfer.D. Control requires only owning 80 percent of the value ofthe voting stock.E. All are characteristics.

Tax deferral is permitted under Internal Revenue Code Section 351 when a transferor exchanges…

Answered: Question:512 Which of the following is…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter4: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 10DQ

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9 When making non-cash distributions where the fair market value of the property distirbuted exceeds its adjusted basis, corporations must: a. Defer the gain until such time as the recipient shareholder disposes of all stock in the corporation b. Disclose the adjusted basis info to the recipient shareholder so the shareholder may recognize the gain upon disposition. c. Recognize gain under IRC 311
33. A purchaser of a business will generally prefer which of the following? An asset purchase to receive new basis for depreciation A stock purchase because the seller will receive capital gains Utilizing a §338(g) election If the selling entity is an S Corporation making a joint §338(h)(10) election All of the above A,C,&D What form is required to report the allocation of the purchase price? ____________
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.
Hippo Co. is a holding company. It holds all the shares of Opco. Shareholder H holds all the shares of Hippo Co. What should Opco be directed to do prior to its sale in order to minimize taxable capital gains? a. Transfer all assets to Hippo Co. before sale. b. Transfer all shares in Opco to Shareholder H prior to the sale c. Transfer all the shares of Hippo Co. to shareholder H prior to the sale. d. Pay a tax-free dividend to Hippo Co. from Opco prior to the sale
When would a sole proprietorship use IFRS? Select one: a. If it ho plans to become public in the near future b. If its competitors use ASPE c. A sole proprietorship is never allowed to use IFRS d. If there is a plan to become a public company in the near future
When may a corporation sell, lease, exchange, mortgage, or pledge all or substantially all of its assets in the usual and regular course of its business? b. When may a corporation sell, lease, exchange, mortgage, or pledge all or substantially all of its assets other than in the usual and regular course of its business? c. What are the rights of a shareholder who dissents from a proposed sale or exchange of all or substantially all of the assets of a corporation other than in the usual and regular course of its business?
e. How would your answers to items (b) through (d) change if the Legal Entity is a "voting interest entity?" Consolidated net income $ Consolidated net income attributable to noncontrolling interest $ Consolidated net income attributable to controlling interest $ 0 0 0
7
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.
On January 7, 2022, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under § 351. The shareholder's basis, the fair market value, and the built-in gain (loss) of each property are: Shareholder's Fair Market Built in Gain Basis Value or (Loss) Property 1 $471,800 $566,160 $94,360 Property 2 $802,060 $613,340 ($188,720) Net built-in loss ($94,360) Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 45% shareholder when the property is worth $518,980. a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. Martin's basis is Property 1 is a Martin's basis in Property 2 is a basis of $ basis of $ b. Compute Martin's realized and recognized loss on the liquidating distribution of Property 2. Martin has a realized loss of $ and a recognized loss of $
(Based on Appendix B) LTV Corporation grants SARs to key executives. Upon exercise, the SARs entitleexecutives to receive either cash or stock equal in value to the excess of the market price at exercise over theshare price at the date of grant. How should LTV account for the awards?
True or False: An S Corporation recognizes gain on the distribution of appreciated property to its shareholders which is then reported to its shareholders on Schedule K-1.

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