Questions from Federal Taxation

Q: For the last five years, Ann and Fred each have owned

For the last five years, Ann and Fred each have owned 50 of the 100 outstanding shares of Zero Corporation stock. Ann transfers land having a $10,000 basis and a $25,000 FMV to Zero for an additional...

Q: Compare the tax consequences of a taxable asset acquisition and a Type

Compare the tax consequences of a taxable asset acquisition and a Type C asset-for-stock reorganization, based on the following factors: a. Consideration used to effect the transaction. b. Recogniti...

Q: Which of the following events as part of an acquisitive reorganization require

Which of the following events as part of an acquisitive reorganization require the target corporation to recognize gain? Assume in all cases that the target corporation liquidates in the reorganizatio...

Q: A shareholder receives stock and cash in an acquisitive reorganization. The

A shareholder receives stock and cash in an acquisitive reorganization. The shareholder recognizes a gain because of the boot (cash) received. What rules determine whether the character of the shareho...

Q: Evaluate the following statement: Individual shareholders who recognize gain as the

Evaluate the following statement: Individual shareholders who recognize gain as the result of receiving boot in a corporate reorganization generally prefer to report capital gain, whereas corporate sh...

Q: How is the basis in nonboot stock and securities received by a

How is the basis in nonboot stock and securities received by a shareholder determined? How is the basis in boot property determined?

Q: Compare the types of consideration that can be used in Type A

Compare the types of consideration that can be used in Type A, B, and C reorganizations.

Q: How does the IRS interpret the continuity of interest doctrine for a

How does the IRS interpret the continuity of interest doctrine for a Type A reorganization?

Q: What are the advantages of a Type C asset-forstock reorganization

What are the advantages of a Type C asset-forstock reorganization as opposed to a Type A merger reorganization? The disadvantages?

Q: How does the IRS interpret the “substantially all” asset requirement

How does the IRS interpret the “substantially all” asset requirement for a Type C reorganization?