X Corp. assets FMV $2,500,000; Basis $500,000. X Corp. completely liquidates and distributes its assets to A, the sole Shareholder. Shareholder A’s stock basis is $250,000. Is a formal plan of dissolution required? §__________ What Form is required for X to file to report the liquidation? ___________ Compute Corporate gain/loss indicate amount and category ___________________________________________________________________________ _____________________________________________________________________ ________________________________________________________________________ Code Section for Part c §__________ Compute Corporate Tax $___________________________________________________ ________________________________________________________________________ Compute A’s gain/loss. $___________________________________________________ ________________________________________________________________________ Code Section for Part f §__________ Assume A is in the maximum tax bracket what is the tax rate applicable to A? (ignore any surtax) _________________ What is A’s basis in the property received? _________________ Code Section for Part i. Be specific. §__________ If X Corp. was a 100% subsidiary of Y Corp. does X recognize a gain on liquidation and if so, compute amount. $___________________________________________________ ________________________________________________________________________ Code Section(s) for Part k §_____________ What is Y Corp’s basis in the assets in Part k? $____________
X Corp. assets FMV $2,500,000; Basis $500,000. X Corp. completely liquidates and distributes its assets to A, the sole Shareholder. Shareholder A’s stock basis is $250,000.
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Is a formal plan of dissolution required? §__________
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What Form is required for X to file to report the liquidation? ___________
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Compute Corporate gain/loss indicate amount and category
___________________________________________________________________________ _____________________________________________________________________ ________________________________________________________________________
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Code Section for Part c §__________
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Compute Corporate Tax $___________________________________________________
________________________________________________________________________
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Compute A’s gain/loss. $___________________________________________________
________________________________________________________________________
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Code Section for Part f §__________
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Assume A is in the maximum tax bracket what is the tax rate applicable to A? (ignore any
surtax) _________________
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What is A’s basis in the property received? _________________
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Code Section for Part i. Be specific. §__________
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If X Corp. was a 100% subsidiary of Y Corp. does X recognize a gain on liquidation and if
so, compute amount. $___________________________________________________
________________________________________________________________________
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Code Section(s) for Part k §_____________
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What is Y Corp’s basis in the assets in Part k? $____________
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