[The following information applies to the questions displayed below.] Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in 100 percent of the corporation's stock. The property transferred to the corporation had the following fair marke and adjusted tax bases: Inventory Building Land Total FMV $ 96,000 720,000 1,104,000 $ 1,920,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value corporation's stock received in the exchange was $1,820,000. Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable Inventory Adjusted Tax Basis $ 48,000 480,000 1,440,000 $ 1,968,000 d. What is the corporation's adjusted tax basis in each of the assets received in the exchange? Building Land

[The following information applies to the questions displayed below.] Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in 100 percent of the corporation's stock. The property transferred to the corporation had the following fair marke and adjusted tax bases: Inventory Building Land Total FMV $ 96,000 720,000 1,104,000 $ 1,920,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value corporation's stock received in the exchange was $1,820,000. Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable Inventory Adjusted Tax Basis $ 48,000 480,000 1,440,000 $ 1,968,000 d. What is the corporation's adjusted tax basis in each of the assets received in the exchange? Building Land

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Dhapa
Heliot Company operates its business in State H, which levies a 6 percent sales and use tax. This year, Heliot purchased a $600,000 item of tangible property in State K and paid $18,000 sales tax to the state. It also purchased a $750,000 item of tangible property in State L and paid $48,750 sales tax to the state. Firm H transported both items of property into State H for use in its business. Required: a. Compute the use tax that Heliot owes to State H for the property purchased in State K. b. Compute the use tax that Heliot owes to State H for the property purchased in State L. Complete this question by entering your answers in the tabs below. Required A Required B Compute the use tax that Heliot owes to State H for the property purchased in State K. Amount Pre credit use tax Sales tax paid to State K S Use tax owed to State H Required A Required B >
Maatex Inc., an accrual-basis taxpayer, transferred an operating division to a newly incorporated subsidiary, Taylor Inc., in exchange for 100% of Taylor’s newly issued common stock. The division’s business assets were worth $900,000 and had a tax basis of $440,000. The division also had $82,000 of accounts payable which were assumed by Taylor Inc. as part of the incorporation transaction. Required Should Maatex Inc. recognize any of its $460,000 realized gain on the exchange of property for stock and debt relief? How would your answers to these questions change if the accounts payable assumed by Taylor totaled $500,000 rather than only $82,000?
ADetermine the amount of taxable income and separately stated items in each of the cases below. Assuming the corporation is a Subchapter S corporation. Ignore any carryforward items. a. Corporate financial statement net income of $52,000 including tax expense of $15,000, charitable contributions of $3000, and depreciation expense of $37,000, Depreciation expense for tax purposes is $46,000. b. Corporate financial statement net income of $139,000 including tax expense of $68,000, charitable contributions of $28,000, depreciation expense of $103,000, and meals expenses of $31,000. Depreciation expense for tax purposes is $145,000. c. Corporate financial statement: net income of $226,000 including tax expense of $111,000, charitable contributions of $16,000, municipal bond interest of $19,000, meals expense of $41,000, capital gains of $6,000 and depreciation expense of $142,000. Depreciation expense for tax purposes is $131,000, and the corporation has $7000 charitable contribution…
Subject : Accounting
Please Do not Give image format
Required information Problem 19-40 (LO 19-2) (Algo) [The following information applies to the questions displayed below.] Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases: Inventory Building Land Total FMV $ 40,000 300,000 460,000 Adjusted Tax Basis $ 20,000 200,000 600,000 $ 800,000 $ 820,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $700,000. Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Problem 19-40 Part g (Algo) g. Suppose the corporation assumed a mortgage of $900,000 attached to the building and land. The fair market value of the building is $500,000 and the fair market value of the…
Use the following information to complete the chart below, indicating the Calvet Trust's entity accounting income for each of the alternatives. Interest income, taxable $300,000 Interest income, tax-exempt 30,000 Interest income, tax-exempt but AMT preference item 20,000 Long-term capital gain 40,000 Trustee fee 10,000 Trust Agreement Provisions Trust AccountingIncome Fees and capital gains allocable to corpus 350,000 Capital gains allocable to corpus, one-half of fees allocable to income Capital gains allocable to income, silent concerning allocation of fees Fees and exempt income allocable to corpus, silent concerning allocationof capital gain/loss
Business K exchanged an old asset (FMV $95,000) for a new asset (FMV $95,000). Business K's tax basis in the old asset was $113,000. Required: a. Compute Business K's realized loss, recognized loss, and tax basis in the new asset assuming the exchange was a taxable transaction. b. Compute Business K's realized loss, recognized loss, and tax basis in the new asset, assuming the exchange was a nontaxable transaction. c. Six months after the exchange, Business K sold the new asset for $103,000 cash. How much gain or loss does Business K recognize if the exchange was taxable? How much gain or loss if the exchange was nontaxable? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute Business K's realized loss, recognized loss, and tax basis in the new asset assuming the exchange was a taxable transaction. Note: Losses should be indicated with a minus sign. Realized loss Recognized loss Tax basis Amount
On the effective date of the Bravo Corporation's (the Company) S Corporation election (January 1, 2020) the Company had a built in gain with respect to certain real estate held by the Corporation on that date of $100,000. The Company had zero basis in the real estate and it was appraised for $100,000. One year later (January 1, 2021) this built in gain was realized when the Company sold the real estate to an unrelated party $100,000 and there were no expenses associated with the sale. For the Company's calendar year 2021, the Company has, exclusive of this gain, taxable income of $2,000,000. Required: 1. Calculate the built-in gains tax (Federal) that will be paid by Bravo Corporation with its 2021 tax return as a result of the sale of this real estate. 2. Calculate the amount of gain that will be passed through to the Company's shareholders related to this sale.
Macedonia Corporation distributes Land (Adjusted Basis of $120,000 and Fair Market Value of $200,000) as a Property Dividend to its shareholders. The Land is subject to a liability of $250,000. As a result of this distribution, Macedonia Corporation must (has) Recognized Gain of: $130,000. $ 50,000. $ 80,000. $ -0-.
Gg.115.