Under illinois corporation plan of liquidation the solve this question general accounting Under Illinois Corporation's plan of liquidation, thecorporation distributes land to one of its shareholders,Springer. The land, which is used in Illinois' trade orbusiness, has a $20,000 adjusted basis and a $60,000FMV on the distribution date. What are the taxconsequences of this distribution to Illinois and Springer?

Step 1: Define Tax ConsequencesAny activity or event that may result in taxes due to the government…

Answered: Under Illinois Corporation's plan of…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter12: S Corporations

Section: Chapter Questions

Problem 15CE

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Financial Accounting
Tristan transfers property with a tax basis of $1,160 and a falr market value of $1,720 to a corporation In exchange for stock with a falr market value of $1,160 and $390 In cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $170 on the property transferred. What Is the corporation's tax basis In the property recelved In the exchange? Multiple Cholce $1,720 $1,550 $1,330 $1,160
As part of a transaction that qualifies under Section 351, Ann transfers property with a tax basis of $95,000 and a market value of $125,000 to Acme Corporation in exchange for Acme stock and $7,000 in cash. Acme also assumes a liability of $14,000 that is attached to the property transferred. What is Acme's tax basis in the property received in the exchange? $88,000 $95,000 $102,000 $116,000
Lake Life, Inc., a C corporation, owns a single asset with a basis of $250,000 and a fair market value of $500,000. Lake Life elects S corporation status. Lake Life holds a positive E & P balance. The entity elects S corporation status for 2019 and then sells the asset. What are the corporate-level built-in gains taxes that must be paid by Lake Life? Answer: $____________
Casey transfers property with a tax basis of $2,180 and a fair market value of $6,100 to a corporation in exchange for stock with a fair market value of $4,500 and $575 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,025 on the property transferred. Casey also incurred selling expenses of $391. What is the amount realized by Casey in the exchange?
Casey transfers property with a tax basis of $2,840 and a fair market value of $6,600 to a corporation in exchange for stock with a fair market value of $4,800 and $450 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,350 on the property transferred. Casey also incurred selling expenses of $372. What is the amount realized by Casey in the exchange? Multiple Choice $6,600 $6,228 $6,128 $5,678
C Corporation converts to S Corporation when the fair market value of its assets was $100,000 and its basis of those assets was $60,000. Three years later, S Corporation sells those assets for $120,000. What amount of built in gain is subject to S corporation tax at the date of sale?
Cirrata Inc. is transferring land to Fins Co., a CCPC, under section 85 of the Income Tax Act. The land has an ACB of $70,000 and a FMV of $150,000. Cirrata Inc. will receive $100,000 as non-share consideration and $50,000 in preferred shares. How much is Cirrata's income or loss for tax purposes as a result of the roll-over if the minimum allowable elected value is selected? a) $70,000 b) $30,000 c) SO d) $15,000
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Antoine transfers property with a tax basis of $524 and a fair market value of $647 to a corporation in exchange for stock with a fair market value of $569 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $78 on the property transferred. What is Antoine's tax basis in the stock received in the exchange? Multiple Choice O $647 O $524 $569 O$446.
During the current year, Ecru Corporation is liquidated and distributes its only asset, land, to Kena, the sole shareholder. On the date of distribution, the land has a basis of $100,000, a fair market value of $800,000, and is subject to a liability of $900,000. Kena, who takes the land subject to the liability, has a basis of $200,000 in the Ecru stock. What are the income tax Consequences to Kena and Ecru Corporation with respect to the liquidating distribution of the land?
An S corporation is generally restricted to the calendar year end to mitigate tax deferral. True or False Juke, an S Corporation, distributes a parcel of land to Shannon, one of its shareholders. The land has a basis of $10,000 and a fair market value of $20,000. This distribution will cause Shannon to recognize a share of the deemed gain. True or False

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