Question;Questions;14-24 and 14-51, 17-1 and 17-24;Problems;(Show your work.): 14-52, 17-40, and 17-49;14-24;What is the purpose of the dividends received deduction? What corporations are;entitled to claim this deduction? What dividends qualify for this deduction?;What;is the purpose of the dividends-received deduction? What corporations are;entitled to claim this deduction? What dividends qualify for this deduction?;The purpose of the dividends received deduction is so that corporations would;not be taxed at a corporate level a shareholder level or if when dividends or a;recipient corporation.;14-51;What is the purpose of the reconciliation of taxable income with book income?;17-1;Identify and briefly describe the seven types of corporate reorganization.;Type;A: Mergers and Consolidations;Type;B: Acquisition --- Target Corporation Subsidiary;Type;C: Acquisition --- Target Corporation Liquidation;Type;D: Transfer;Type;E: Recapitalization;Type;F: Identity Change;Type;G: Transfer;17-24;Define and differentiate a spin-off, split-off, and split-up.;Spin;off ?;Split;off-;Split;up ?;14-52;Sam Rogers forms a corporation. Sam transfers to the corporation property;having a basis to him of $15,000 and a fair market value of $27,000 for 900;shares of the $10 par stock of the corporation. A year later, Bill Morrison;who is not related to Sam, transfers property having a basis to him of $1,000;and a fair market value of $3,000 for 100 shares of the corporate stock. The;corporation issued no other stock.;?;a. How much gain does Sam recognize on his exchange? What is the basis to Sam;of his 900 shares?;?;b. How much gain does Bill recognize on his exchange? What is the basis to Bill;of his 100 shares?;?;c. What gain or loss is recognized by the corporation when it issues its shares;to Sam? What is the basis to the corporation of the property it received from;Sam?;?;d. What is the gain or loss recognized by the corporation when it issues its;shares to Bill? What is the basis to the corporation of the property it;received from Bill?;17-40;Superior Corporation acquired Taylor Corporation pursuant to a statutory merger;under state law. As a result of the merger, Taylor Corporation's former;shareholders received common stock in Superior having a value of $300,000;long-term bonds of Superior with a principal amount (and fair market value) of;$500,000, and cash of $200,000. What type of reorganization has taken place?;Describe the tax consequences to Taylor Corporation, its former shareholders;and Superior Corporation.;17-49;Shipyard Corp. acquired Boatworks Corp. in a Type A reorganization on July 1;2012. On the date of acquisition, Boatworks had a deficit in its earnings and;profits of $30,000. Although Shipyard had no accumulated earnings and profits;its current earnings and profits from its calendar-year 2012 operations;totalled $40,000. What amount of the acquired earnings and profits deficit of;$30,000 can be used to off -set Shipyard's current earnings and profits for;2012?
Paper#41991 | Written in 18-Jul-2015Price : $25