Requirement a. What are the net gains and losses from the above items and their character? (if a box is not used in the table or the balance is "0" leave the box empty; do not enter a zero. Enter a loss with a minus sign or parentheses) Short-term gain (loss) Long-term gain (loss) Ordinary income (loss) Baldwin Corporation IBM Microsoft Tidal Radio Wavetable Defaulted loan ABC Corporation
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- In 1980 John formed a farm business (corporation) by contributing a piece of farmland with an adjusted basis of $95,000 In exchange, he got 100 shares of stock, and was the only stockholder. Transaction pursuant to Section 1244. At the time of the transaction the farm was worth $140,000. In 1990 - John gifted 20 shares apiece to his two sons - Carl and Chris. These gifts at the time were valued at $27,000 each. John did not pay a gift tax on the shares. He wanted to reward his sons for their hard work as managers of the company and wanted to place some of the taxes of the business on them. Carl got bought out in exchange for a smaller field on the farm but was no longer involved in the family business. The field given to Carl was originally purchased for $10,000, and the present value is $12,000. Carl's shares were worth $12,000 at the time of the transfer. During the year of the transfer, the family farm earned $80,000. Questions: Perform the calculations if the transfer for Carl is…Liam, a shareholder in Lager, Inc., (a C corporation), would like to sell 800 of his shares of stock in Lager. Since Lager is not traded on an exchange, the only way to sell is the stock is by having Lager redeem the stock. The fair market value of the 800 shares of stock is $200,000. Liam purchased the stock 10 years ago for $95/share. Lager has E&P of $700,000. The corporate stock in Lager is held as follows: Liam 2,000 shares Jennifer (Liam’s sister) 2,000 shares Katherine (Liam’s mother) 2,000 shares Beer Partnerships (Liam has a 30% interest) 4,000 shares 10,000 shares How do you calculate the 800 shares of Liam’s stock to be treated as a qualified stock redemption or will it be treated as a distribution?While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat (GTE), specializes in custom-sculpted cakes for weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of 2022, and each contributed $180,000 in exchange for a 50 percent ownership interest. GTE also borrowed $720,000 from a local bank. Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains to GTE's 2022 activities: GTE uses the cash method of accounting (for both book and tax purposes) and reports income on a calendar-year basis. GTE received $1,100,000 of sales revenue and reported $510,000 of cost of goods sold (it did not have any ending inventory). GTE paid $95,000 compensation to James, $95,000 compensation to Paul, and $105,000 of compensation to other employees…
- While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat (GTE), specializes in custom-sculpted cakes for weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of 2022, and each contributed $180,000 in exchange for a 50 percent ownership interest. GTE also borrowed $720,000 from a local bank. Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains to GTE's 2022 activities: GTE uses the cash method of accounting (for both book and tax purposes) and reports income on a calendar-year basis. GTE received $1,100,000 of sales revenue and reported $510,000 of cost of goods sold (it did not have any ending inventory). GTE paid $95,000 compensation to James, $95,000 compensation to Paul, and $105,000 of compensation to other employees…While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat (GTE), specializes in custom-sculpted cakes for weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of 2022, and each contributed $180,000 in exchange for a 50 percent ownership interest. GTE also borrowed $720,000 from a local bank. Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains to GTE's 2022 activities: GTE uses the cash method of accounting (for both book and tax purposes) and reports income on a calendar-year basis. GTE received $1,100,000 of sales revenue and reported $510,000 of cost of goods sold (it did not have any ending inventory). GTE paid $95,000 compensation to James, $95,000 compensation to Paul, and $105,000 of compensation to other employees…While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat (GTE), specializes in custom-sculpted cakes for weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of 2022, and each contributed $60,000 in exchange for a 50 percent ownership interest. GTE also borrowed $240,000 from a local bank. Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains to GTE's 2022 activities: GTE uses the cash method of accounting (for both book and tax purposes) and reports income on a calendar-year basis. GTE received $500,000 of sales revenue and reported $230,000 of cost of goods sold (it did not have any ending inventory). GTE paid $35,000 compensation to James, $35,000 compensation to Paul, and $45,000 of compensation to other employees…
- While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat (GTE), specializes in custom-sculpted cakes for weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of 2022, and each contributed $60,000 in exchange for a 50 percent ownership interest. GTE also borrowed $240,000 from a local bank. Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains to GTE's 2022 activities: GTE uses the cash method of accounting (for both book and tax purposes) and reports income on a calendar-year basis. GTE received $500,000 of sales revenue and reported $230,000 of cost of goods sold (it did not have any ending inventory). GTE paid $35,000 compensation to James, $35,000 compensation to Paul, and $45,000 of compensation to other employees…Christopher regularly invests in internet company stocks, hoping to become wealthy by making an early investment in the next high-tech phenomenon. In 2012, Christopher purchased 3,000 shares of FlicksNet, a film rental company, for 15 per share shortly after the company went public. Because Christopher purchased the shares in their initial offering, the shares are qualified small business stock. In 2019, Christopher sold 800 of the shares (at 325 per share) so that he could purchase a reservation for a seat on 1-lon Musks first human mission to Mars. What regular income tax consequences and AMT consequences arise for Christopher as a result of the sale of these shares?Please help
- Ragan Thermal Systems, Inc., was founded nine years ago by brother and sister Carrington and Genevieve Ragan. The company manufactures and installs commercial heating, ventilation, and cooling (HVAC) units. Ragan has experienced rapid growth because of a proprietary technology that increases the energy efficiency of its systems. The company is equally owned by Carrington and Genevieve. The original agreement between the siblings gave each 50,000 shares of stock. In the event either wished to sell the stock, the shares first had to be offered to the other at a discounted price. Although neither sibling wants to sell any shares at this time, they have decided they should value their holdings in the company for financial planning purposes. To accomplish this, they have gathered the following information about their main competitors. Ragan Thermal Systems, Inc., Competitors EPS DPS Stock Price ROE Arctic Cooling, Inc. National Heating & Cooling Expert HVAC Corp. Industry average $.82 $.16…Jason purchased 300 shares of the hodge and mattox energy fund. Each share cost 15.15. Fifteen months later, he decided to sell his shares when the share value reached 18.10. A what is the amount of his total initial investment? B what was the total amount Jason revived when he sold his shares in the hodge and mattox fund? C how much profit did he make on his investment?Sam Scurry bought several hundred shares of annable.com at a price of $41.40 about 5 years ago that sold for $64.20 per share today. Sam pays capital gains tax at the rate of 19% and pays tax on dividends at the rate of 27%. Suppose that annable.com elects not to pay a dividend this year and that Sam sells 19 shares of stock. How much of the total amount of proceeds from the sale will Sam get to keep?