Which of the following statements regarding transfers of property or services is true? O O For a transfer of property to a corporation, no gain is recognized by the taxpayer if the A. transferred property is encumbered with liabilities in excess of the taxpayer's basis in th property. If receipt of stock is subject to a substantial risk of forfeiture, income is recognized by th B. recipient in the year the stock is received even though the substantial risk of forfeiture H lapsed. If the contributing partner receives a capital interest in the partnership upon contributi C. services, the contributor will be taxed on the transfer when the contributor actually rec profits. In order for an exchange of services to a partnership for a profit interest to qualify as a D. nontaxable event, the service partner must provide services to the partnership or for it benefit, and the services must be provided by the service partner in his capacity as a p

Which of the following statements regarding transfers of property or services is true? O O For a transfer of property to a corporation, no gain is recognized by the taxpayer if the A. transferred property is encumbered with liabilities in excess of the taxpayer's basis in th property. If receipt of stock is subject to a substantial risk of forfeiture, income is recognized by th B. recipient in the year the stock is received even though the substantial risk of forfeiture H lapsed. If the contributing partner receives a capital interest in the partnership upon contributi C. services, the contributor will be taxed on the transfer when the contributor actually rec profits. In order for an exchange of services to a partnership for a profit interest to qualify as a D. nontaxable event, the service partner must provide services to the partnership or for it benefit, and the services must be provided by the service partner in his capacity as a p

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

S1 – All dispositions of real properties classified as capital assets are subject to capital gains tax. S2 – All dispositions of shares of stocks are subject to capital gains tax. Group of answer choices a. Only S1 is true b. Only S2 is true c. Both are true d. Both are false
390. CHAPTER 4â€”CORPORATIONS: ORGANIZATION AND CAPITAL STRUCTURE Que90 Issues relating to basis arise when a taxpayer is involved in a Â§ 351 transaction. Describe the underlying rules, and the purpose they serve. 391. CHAPTER 4â€”CORPORATIONS: ORGANIZATION AND CAPITAL STRUCTURE Que91 How is the transfer of liabilities in a property transaction generally treated for tax purposes? How is a transfer of liabilities generally treated in a Â§ 351 transaction? What exceptions could arise to this usual treatment in a Â§ 351 setting? 392. CHAPTER 4â€”CORPORATIONS: ORGANIZATION AND CAPITAL STRUCTURE Que92 When forming a corporation, a transferor-shareholder may choose to receive some corporate debt along with stock. Identify some of the issues the transferor must consider when deciding whether debt should be a part of the transaction. 393. CHAPTER 4â€”CORPORATIONS: ORGANIZATION AND CAPITAL STRUCTURE Que93…
A covered member creates a blind trust and transfers assets into the blind trust. The covered member will not supervise or participate in the trust’s investment decisions during the term of the trust. if the covered member retains the right to amend or revoke the trust, Will the trust and the underlying assets be considered the covered member’s direct financial interests? Yes or No
(12) Which of the following would not be included in the corpus or principal of an estate? a. accrued interest and declared dividends on investments held by decedent b. personal valuables c. life insurance proceeds where designated beneficiary is the estate d. all of the above are included
A corporation that transfers restricted stock to an employee as compensation may deduct the stock's fair market value in the year of transfer even if the employee doesn't recognize the value as gross income in the year of transfer. T/F also explain the reason, thanks.
In an agreement involving the right to acquire property, which of the following are conditions that must be met in order for the IRS to accept the purchase price set in the agreement as a valid measurement of the value of the property being acquired? The purchase price must be determined by an independent appraisal submitted with an informational gift tax return regardless of the value of the property. The agreement must be a bona fide business arrangement. The agreement cannot be an attempt to transfer the property to a family member for less than full and adequate consideration. The terms of the agreement must be comparable to those that would be entered into by persons in an arm's-length transaction A) I and III B) II and IV C) I and IV D) II, III, and IV
1. When a business ceases to operate and its inventories are disposed of a gain on the inventories will be treated as a capital gain unless an election is made by the selling taxpayer True or False 2. When a business ceases to operate and its accounts receivable are disposed of with the other business assets any loss on the receivables will be treated as a capital loss unless a joint election is made by the purchaser and seller. True or False
when a C-Corp distributes appreciated assets to its shareholders should recognize in in the corporate return a taxable profit on the appreciation?