With respect to the distribution vijay has gain of Vijay Corporation distributes property to itssole shareholder, Leo. The property has a fairmarket value of $520,000 and an adjustedbasis of $360,000.With respect to the distribution, Vijay has again of

Explanation of Gain on Property Distribution:A gain on property distribution occurs when a…

Answered: Vijay Corporation distributes property…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 22P

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With respect to the distribution, Vijay has a gain of
Vijay Corporation distributes property to its sole shareholder, Leo. The property has a fair market value of $520,000 and an adjusted basis of $360,000. With respect to the distribution, Vijay has a gain of ____.
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Jocelyn contributes land with a basis of $39,500 and fair market value of $59,250 and inventory with a basis of $19,600 and fair market value of $29,400 in exchange for 100% of Zion Corporation stock. The land is subject to a $9,875 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange ________? tax-free under § 351 because the release of a liability________? treated as boot under§ 357(a). As a result, Jocelyn has income of $fill in the blank _____? and a basis $fill in the blank 4______? in her stock.
Jocelyn contributes land with a basis of $56,000 and fair market value of $84,000 and inventory with a basis of $19,000 and fair market value of $28,500 in exchange for 100% of Zion Corporation stock. The land is subject to a $14,000 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange l § 357(a). As a result, Jocelyn has income of $ tax-free under § 351 because the release of a liability and a basis $ treated as boot under in her stock.
When Bruno's basis in his LLC interest is $228,600, he receives cash of $91,440, a proportionate share of inventory, and land in a distribution that liquidates both the LLC and his entire LLC interest. The inventory has a basis to the LLC of $57,150 and a fair market value of $73,152. The land's basis is $102,870, and the fair market value is $91,440. How much gain or loss does Bruno recognize, and what is his basis in the inventory and land received in the distribution? If an amount is zero, enter "0". Bruno recognizes . Bruno's basis in the inventory is $____________ and his basis in the land is $______________
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N Corporation has E&P of $400,000. It distributes land with a fair market value of $180,000 (adjusted basis of $125,000) to its sole shareholder, Rory. The land is subject to a liability of $155,000 that Rory assumes. Rory has what amount for a taxable dividend: A taxable dividend of $15,000 A taxable dividend of $25,000 A taxable dividend of $55,000 A taxable dividend of $180,000 A taxable dividend of $400,000 The distribution of land will not result in a taxable event for Rory
N Corporation has E&P of $240,000. It distributes land with a fair market value of $70,000 (adjusted basis of $25,000) to its sole shareholder, Rory. The land is subject to a liability of $55,000 that Rory assumes. Rory has: Question 16 options: A taxable dividend of $15,000 A taxable dividend of $25,000 A taxable dividend of $45,000 A taxable dividend of $55,000 A taxable dividend of $70,000
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
John transfers a property (A/B $10,000, FMV $50,000) to Brown Corp. in exchange for 100% of the Brown stock, which is worth $50,000. The property is subject to a liability of $20,000, which Brown assumes. The transfer is for business purpose. The $20,000 liability is also for business purpose. What is John’s recognized gain? What is John’s stock basis in the Brown corporation What is Brown’s basis in the property?
A corporation sells property (basis of $750,000) to its sole shareholder for $450,000, the fair market value of the property. With respect to the sale: MPC Corporation makes a property distribution on 12/31/16 to its sole shareholder, Jon. The property distributed is a house (fair market value of $400,000; basis of $300,000) that is subject to a $150,000 mortgage that Jon assumes. Before considering the consequences of the distribution, MPC’s current E & P before the distribution is $175,000 and its accumulated E & P is $100,000. MPC makes no other distributions during the current year. What is MPCs taxable gain on the distribution of the house? What is MPC’s current E&P after the distribution on 12/31/16? What is Jon’s taxable gain (if any) and what type of gain is it? What is Jon’s basis in the house?

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Vijay Corporation distributes property to its sole shareholder, Leo. The property has a fair market value of $520,000 and an adjusted basis of $360,000. With respect to the distribution, Vijay has a gain of