Questions from Federal Taxation


Q: Able Corporation adopts a plan of liquidation. Under the plan,

Able Corporation adopts a plan of liquidation. Under the plan, Robert, who owns 60% of the Able stock, is to receive 2,000 acres of land in an area where a number of producing oil wells have been dril...

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Q: Explain the IRS’s position regarding whether a liquidation transaction will be considered

Explain the IRS’s position regarding whether a liquidation transaction will be considered open or closed.

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Q: For a corporation that intends to liquidate, explain the tax advantages

For a corporation that intends to liquidate, explain the tax advantages to the shareholders of having the corporation (1) adopt a plan of liquidation, (2) sell its assets in an installment sale, and t...

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Q: Cable Corporation is 60% owned by Anna and 40% owned

Cable Corporation is 60% owned by Anna and 40% owned by Jim, who are unrelated. It has noncash assets, which it sells to an unrelated purchaser for $100,000 in cash and $900,000 in installment obligat...

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Q: Describe the tax treatment accorded the following expenses associated with a liquidation

Describe the tax treatment accorded the following expenses associated with a liquidation: a. Commissions paid on the sale of the liquidating corporation’s assets b. Accounting fees paid to prepare t...

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Q: Yancy owns 70% of Andover Corporation stock. At the beginning

Yancy owns 70% of Andover Corporation stock. At the beginning of the current year, the corporation has $400,000 of NOLs. Yancy plans to liquidate the corporation and have it distribute assets having a...

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Q: In which of the following unrelated exchanges is the Sec. 351

In which of the following unrelated exchanges is the Sec. 351 control requirement met? If the transaction does not meet the Sec. 351 requirements, suggest ways in which the transaction can be structur...

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Q: What is a plan of liquidation? Why is it advisable for

What is a plan of liquidation? Why is it advisable for a corporation to adopt a formal plan of liquidation?

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Q: Parent Corporation, which operates an electric utility, created a 100

Parent Corporation, which operates an electric utility, created a 100%-owned corporation, Subsidiary, that built and managed an office building. Assume the two corporations have filed separate tax ret...

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Q: Alpha Corporation is a holding company owned equally by Harry and Rita

Alpha Corporation is a holding company owned equally by Harry and Rita. They acquired the Alpha stock many years ago when the corporation was formed. Alpha has its money invested almost entirely in st...

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