Questions from Federal Taxation

Q: P and S Corporations comprise an affiliated group that files separate tax

P and S Corporations comprise an affiliated group that files separate tax returns. P and S had no intercompany inventory sales before the current year (Year 1). P and S use the first-in, first-out (FI...

Q: P Corporation acquires all of S Corporation’s stock at the beginning of

P Corporation acquires all of S Corporation’s stock at the beginning of the current year in a transaction that qualifies as a Sec. 382 ownership change. P and S elect to file a consolidated tax return...

Q: Refer to the facts in Comprehensive Problem C:6­54

Refer to the facts in Comprehensive Problem C:6­54. Now assume the entity is a partnership named Lifecycle Partnership. Additional facts are as follows: • Except for precontribution gains and losses,...

Q: Anne decides to leave the ABC Partnership after owning the interest for

Anne decides to leave the ABC Partnership after owning the interest for many years. She owns a 52% capital, profits, and loss interest in the general partnership (which is not a service partnership)....

Q: Happy Times Film Distributions is an electing large partnership. During the

Happy Times Film Distributions is an electing large partnership. During the current year, the partnership has the following income, loss, and deduction items: Ordinary income……………………………………..$700,000...

Q: What conditions are required for a partner to recognize a loss upon

What conditions are required for a partner to recognize a loss upon receipt of a distribution from a partnership?

Q: The KLM Partnership owns the following assets on March 1 of the

The KLM Partnership owns the following assets on March 1 of the current year: a. Which partnership items are unrealized receivables? b. Is the partnership’s inventory substantially...

Q: The JKLM Partnership owns the following assets on October 1 of the

The JKLM Partnership owns the following assets on October 1 of the current year: a. Which partnership items are unrealized receivables? b. Is the partnership’s inventory substantia...

Q: The PQRS Partnership owns the following assets on December 30 of the

The PQRS Partnership owns the following assets on December 30 of the current year: The partnership has no liabilities, and each partner’s basis in his or her partnership interest is...

Q: The CL Partnership has two partners, Cleo and Leo. Each

The CL Partnership has two partners, Cleo and Leo. Each partner’s basis in his or her partnership interest is $10,000 before any distribution. The partnership distributes $12,000 cash to Cleo and $8,0...