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Glen and Michael are equal partners in Trout Enter...

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Glen and Michael are equal partners in Trout Enterprises, a calendar year partnership. During the year, Trout Enterprises had gross income of $400,000 and operating expenses of $220,000. In addition, the partnership sold land that had been held for investment purposes for a long-term capital gain of $100,000. During the year, Glen withdrew $60,000 from the partnership, and Michael withdrew $60,000. Discuss the impact of this information on the taxable income of Trout, Glen, and Michael. Answer a. Trout pays tax on $0 income, Glen?s taxable income increases by $60,000, and Michael?s taxable income increases by $60,000. b. Trout pays tax on $280,000 income, Glen?s taxable income increases by $60,000, and Michael?s taxable income increases by $60,000. c. Trout pays tax on $0 income, Glen?s taxable income increases by $200,000, and Michael?s taxable income increases by $200,000. d. Trout pays tax on $0 income, Glen?s taxable income increases by $140,000, and Michael?s taxable income increases by $140,000. e. None of the above. Ted is the sole shareholder of a C corporation, and Sue owns a sole proprietorship. Both businesses were started in 2010, and each business sustained a $5,000 net capital loss for the year. Which of the following statements is correct? Answer a. Ted?s corporation can deduct the $5,000 capital loss in 2010. b. Ted?s corporation can deduct $3,000 of the capital loss in 2010. c. Sue can carry the capital loss back three years and forward five years. d. Sue can deduct the $5,000 capital loss against ordinary income in 2010. e. None of the above. Which of the following statements is incorrect about the check-the-box Regulations? Answer a. A limited liability company with more than one owner can elect to be taxed as a corporation. b. If a limited liability company with one owner does not make an election, the entity is taxed as a sole proprietorship. c. If a limited liability company with more than one owner does not make an election, the entity is taxed as a partnership. d. A limited liability company with one owner can elect to be taxed as a corporation. e. An entity with more than one owner and formed as a corporation can elect to be taxed as a partnership. Eileen transfers property worth $200,000 (basis of $60,000) to Goldfinch Corporation. In return, she receives 80% of the stock in Goldfinch Corporation (fair market value of $180,000) and a long-term note (fair market value of $20,000) executed by Goldfinch and made payable to Eileen. Eileen recognizes gain on the transfer of: Answer a. $0. b. $20,000. c. $60,000. d. $140,000. e. None of the above. Kevin and Nicole form Indigo Corporation with the following transfers: inventory from Kevin (basis of $360,000 and fair market value of $400,000) and improved real estate from Nicole (basis of $320,000 and fair market value of $375,000). Nicole, an accountant, agrees to contribute her services (worth $25,000) in organizing Indigo. The corporation?s stock is distributed equally to Kevin and Nicole. As a result of these transfers: Answer a. Indigo can deduct $25,000 as a business expense. b. Nicole has a recognized gain of $55,000 on the transfer of the real estate. c. Indigo has a basis of $360,000 in the inventory. d. Indigo has a basis of $375,000 in the real estate. e. None of the above.,i have more questions. will you be able to answer 10 more? i need it in an hour.,are you there?,i will pay more but im not sure if this is going to work. please anyone?

 

Paper#7862 | Written in 18-Jul-2015

Price : $25
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