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1. Two days before the ex-dividend date, A corpora...




1. Two days before the ex-dividend date, A corporation buys 100 shares of B corporation stock(a less than 1% interest)for $200,000. A corporation receives $10,000 of dividends from B corporation. Two weeks after the ex-dividend date, A sells the B corporation stock for $190,000. Which of the following statement is correct? a. A corporation cannot recognize a capital loss b. A corporation cannot take a dividends-received deduction on the B dividend. c. A corporation will be allowed a 70% dividends-received deduction when reporting the B dividend. d. A corporation will receive no dividends-received deduction because the stock was purchased ex-dividend. 2.Tony owns 100% of M corporation's single class of stock. Tony transfers land and a building having a $30,000 and $100,000 adjusted basis, respectively, to M corporation in exchange for additional M corporation common stock worth $200,000 and IBM stock worth $20,000. The IBM stock had a $5,000 basis on M corporation's books. Bill transfers $50,000 in cash for 15% of the M corporation common stock. What amount of gain is recognized by Tony and M corporation on the exchange? Tony M corporation a. $0 $0 b. $0 $15,000 c. $20,000 $0 d. $20,000 $15,000 3. Bill and Ken own Tax, Inc.(an S corporation)equally. In 2004, the corporation reported a $130,000 ordinary loss. Tax Inc.'s liabilities at the end of 2004 included $100,000 of accounts payable, $150,000 of mortgages payable, and a $20,000 note owned to Bill. Each owner has a $40,000 adjusted basis for his stock on January 1, 2004. Compute the loss reportable by Bill. a. $65,000 b. $60,000 c. $40,000 d. none of the answers are correct 4. Corporations X,Y,and Z are component members of a controlled group of corporations on December 31 of the current year. For the current year, they allocate taxable income brackets under an apportionment plan as follows: Corporation X 1/4 of each tax bracket Corporation Y 1/2 of each tax bracket Corporation Z 1/4 of each tax bracket corporation Y has taxable income of $80,000 for the current year. What is corporation Y's income tax liability if the controlled group's total taxable income is $97,000? a. $12,000 b. $15,400 c. $18,680 d. $21,325 5. Bill transferred property worth $75,000 and services worth $25,000 to the X corporation. In exchange, he received stock in X valued at $100,000. Immediately after the exchange, Bill owned 80% of the only class of outstanding stock. Which of the following is true with respect to Bill's treatment of the transaction? a. short term capital gain of $100,000 b. short term capital gain of $25,000 c. ordinary income of $25,000 d. no income until the stock is sold,Is there anybody help me out to solve those questions? Thank you.,I would like to postpone the due time of this question to 11:00pm tonight. Thank you.,Is there anyone can response me? Thanks.,Hello Michael, Are you online? Thank you.


Paper#6302 | Written in 18-Jul-2015

Price : $25