Questions from Federal Taxation

Q: During the current year, Zeta Corporation distributes the assets listed below

During the current year, Zeta Corporation distributes the assets listed below to its sole shareholder, Susan. For each asset listed, determine the gross income recognized by Susan, her basis in the as...

Q: King Corporation is a profitable manufacturing concern with $800,000

King Corporation is a profitable manufacturing concern with $800,000 of E&P. It is owned in equal shares by Harry and Wilma, husband and wife. Both individuals are actively involved in the business. D...

Q: What factors did Congress mandate to be considered in determining whether indebtedness

What factors did Congress mandate to be considered in determining whether indebtedness is classified as debt or equity for tax purposes?

Q: Forward Corporation is owned by a group of 15 shareholders. During

Forward Corporation is owned by a group of 15 shareholders. During the current year, Forward pays $550,000 in salary and bonuses to Alvin, its president and controlling shareholder. The corporation’s...

Q: Wilton Corporation has a single class of common stock outstanding. Robert

Wilton Corporation has a single class of common stock outstanding. Robert owns 100 shares, which he purchased six years ago for $100,000. In the current year, when the stock is worth $1,200 per share,...

Q: Moss Corporation has a single class of common stock outstanding. Tillie

Moss Corporation has a single class of common stock outstanding. Tillie owns 1,000 shares, which she purchased five years ago for $100,000. Moss declares a stock dividend payable in 8% preferred stock...

Q: Trusty Corporation has a single class of common stock outstanding. Jim

Trusty Corporation has a single class of common stock outstanding. Jim owns 200 shares, which he purchased for $50 per share two years ago. On April 10 of the current year, Trusty distributes to its c...

Q: Moose Corporation’s 400 shares of outstanding stock are owned as follows:

Moose Corporation’s 400 shares of outstanding stock are owned as follows: Name ……………….……………….……………….…… Shares Lara (an individual) ……………….………………….….………60 LMN Partnership (Lara is a 20% partner...

Q: Paul owns all 100 shares of Presto Corporation stock. His basis

Paul owns all 100 shares of Presto Corporation stock. His basis in the stock is $10,000. Presto has $100,000 of E&P. Presto redeems 25 of Paul’s shares for $30,000. What are the tax consequences of th...

Q: Four unrelated shareholders own Benton Corporation’s 400 shares of outstanding stock.

Four unrelated shareholders own Benton Corporation’s 400 shares of outstanding stock. As indicated below, Benton redeems a total of 100 shares for $500 per share from three of its sh...