Questions from Federal Taxation

Q: Beach Corporation, an accrual basis taxpayer, reports the following results

Beach Corporation, an accrual basis taxpayer, reports the following results for the current year: a. What is Beach’s taxable income? b. What is Beach’s current E&...

Q: How does the assignment of income doctrine apply to a Sec.

How does the assignment of income doctrine apply to a Sec. 351 exchange?

Q: Water Corporation reports $500,000 of taxable income for the

Water Corporation reports $500,000 of taxable income for the current year. The following additional information is available: • For the current year, Water reports an $80,000 long-term capital loss...

Q: Investors formed Peach Corporation in Year 1. Its current E&

Investors formed Peach Corporation in Year 1. Its current E&P (or current E&P deficit) and distributions for Years 1 through 4 are as follows: What is Peach’s accumulated E&...

Q: Clover Corporation is a calendar year taxpayer. Connie owns all of

Clover Corporation is a calendar year taxpayer. Connie owns all of its stock. Her basis in the stock is $10,000. On April 1 of the current (non-leap) year Clover distributes $52,000 to Connie. Determi...

Q: Pink Corporation is a calendar year taxpayer. Pete owns one-

Pink Corporation is a calendar year taxpayer. Pete owns one-third (100 shares) of Pink stock. His basis in the stock is $25,000. Cheryl owns two-thirds (200 shares) of Pink stock. Her basis in the sto...

Q: At the beginning of the current (non-leap) year

At the beginning of the current (non-leap) year, Charles owns all of Pearl Corporation’s outstanding stock. His basis in the stock is $80,000. On July 1, he sells all his stock to Donald for $125,000....

Q: In the current year, Sedgwick Corporation has $100,000

In the current year, Sedgwick Corporation has $100,000 of current and accumulated E&P. On March 3, Sedgwick distributes to its shareholder Dina a parcel of land (a capital asset) having a $56,000 FMV....

Q: On May 10 of the current year, Stowe Corporation distributes to

On May 10 of the current year, Stowe Corporation distributes to its shareholder Arlene $20,000 in cash and land (a capital asset) having a $50,000 FMV. The land has a $15,000 adjusted basis (for both...

Q: On May 15 of the current year, Quick Corporation distributes to

On May 15 of the current year, Quick Corporation distributes to its shareholder Calvin a building having a $250,000 FMV and used in Quick’s business. The building originally cost $180,000. Quick claim...