Questions from Federal Taxation


Q: Parent Corporation has been in the business of manufacturing and selling trucks

Parent Corporation has been in the business of manufacturing and selling trucks for the past eight years. Its subsidiary, Diesel Corporation, has been in the business of manufacturing and selling dies...

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Q: Parent Corporation has owned all 100 shares of Subsidiary Corporation common stock

Parent Corporation has owned all 100 shares of Subsidiary Corporation common stock since 2010. Parent has been in the business of manufacturing and selling light fixtures, and Subsidiary has been in t...

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Q: Ruby Corporation has 100 shares of common stock outstanding. Fred,

Ruby Corporation has 100 shares of common stock outstanding. Fred, a shareholder of Ruby, exchanges his 25% interest in the Ruby stock for Garnet Corporation stock and securities. Ruby purchased 80% o...

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Q: Jean Corporation has two divisions— home cookware and electric home appliances

Jean Corporation has two divisions— home cookware and electric home appliances. Bill and Bob Jean own all of Jean Corporation’s single class of stock. Bill, the old...

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Q: Master Corporation plans a recapitalization. Explain the tax consequences of each

Master Corporation plans a recapitalization. Explain the tax consequences of each of the following unrelated transactions: a. Holders of Class A nonvoting preferred stock exchange their stock for new...

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Q: Milan Corporation is owned by four shareholders. Andy and Bob each

Milan Corporation is owned by four shareholders. Andy and Bob each own 40% of the outstanding common and preferred stock. Chris and Doug each own 10% of the outstanding common and preferred stock. The...

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Q: Identify the type of each of the following reorganizations. a

Identify the type of each of the following reorganizations. a. Briggs Corporation was originally incorporated in Georgia but now conducts most of its business in Florida. The firm transfers substanti...

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Q: Jim owns 80% of Gold Corporation stock. He transfers a

Jim owns 80% of Gold Corporation stock. He transfers a business automobile to Gold in exchange for additional Gold stock worth $5,000 and Gold’s assumption of both his $1,000 automobile debt and his $...

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Q: Discuss the tax consequences of the following corporate reorganizations to the parties

Discuss the tax consequences of the following corporate reorganizations to the parties to the reorganization: a. Adobe Corporation and Tyler Corporation merge under Florida law. Tyler shareholders re...

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Q: For each of the following transactions, indicate the reorganization type (

For each of the following transactions, indicate the reorganization type (e.g., Type A, Type B, etc.). Assume all common stock is voting. a. Anderson and Brown Corporations exchange their assets for a...

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