Questions from Federal Taxation

Q: Galadriel and John, married with no children, own all the

Galadriel and John, married with no children, own all the stock in Marietta Horse Supplies. The couple’s C corporation has been in business for ten years. The business has been successful, permitting...

Q: Steve and Andrew write music and lyrics for popular songs. Two

Steve and Andrew write music and lyrics for popular songs. Two years ago, they organized S&A Music Corporation, each brother owning one-half of its stock. Through the end of the current year, they con...

Q: In the current year, Dick, Evan, and Fran form

In the current year, Dick, Evan, and Fran form Triton Corporation. Dick contributes land (a capital asset) having a $50,000 FMV in exchange for 50 shares of Triton stock. He purchased the land three y...

Q: Paul, a long-time client of yours, has operated

Paul, a long-time client of yours, has operated an automobile repair shop (as a C corporation) for most of his life. The shop has been fairly successful in recent years. His children are not intereste...

Q: Your accounting firm has done the audit and tax work for the

Your accounting firm has done the audit and tax work for the Peerless family and their business entities for 20 years. Approximately 25% of your accounting and tax practice billings come from Peerless...

Q: The following facts pertain to Lifecycle Corporation: • Able owns

The following facts pertain to Lifecycle Corporation: • Able owns a parcel of land (Land A) having a $30,000 FMV and $16,000 adjusted basis. Baker owns an adjacent parcel of land (L...

Q: Nils Corporation, a calendar year taxpayer, adopts a plan of

Nils Corporation, a calendar year taxpayer, adopts a plan of liquidation on April 1 of the current year. The final liquidating distribution occurs on January 5 of next year. Must Nils Corporation file...

Q: Indicate whether each of the following statements about a liquidation is true

Indicate whether each of the following statements about a liquidation is true or false. If the statement is false, explain why. a. Liabilities assumed by a shareholder when a corporation liquidates r...

Q: What is a complete liquidation? A partial liquidation? Explain the

What is a complete liquidation? A partial liquidation? Explain the difference in the tax treatment accorded these two different events.

Q: Summitt Corporation has manufactured and distributed basketball equipment for 20 years.

Summitt Corporation has manufactured and distributed basketball equipment for 20 years. Its owners would like to avoid the corporate income tax and are considering becoming a limited liability company...