Questions from Federal Taxation

Q: Using the facts from Problem C:8-70 below,

Using the facts from Problem C:8-70 below, calculate the tax liabilities of Flying Gator and T Corporations for 2016. How much larger (or smaller) would be the total of the two separate return tax lia...

Q: What is the SRLY-Sec. 382 overlap rule? Explain

What is the SRLY-Sec. 382 overlap rule? Explain its significance and application to a consolidated tax return.

Q: P corporation owns 100% of S Corporation’s stock and the corporations

P corporation owns 100% of S Corporation’s stock and the corporations file a consolidated tax return. a. Explain why P must increase the basis in its S stock by S’s taxable income and decrease the ba...

Q: P Corporation owns 100% of the stock of S1 and S2

P Corporation owns 100% of the stock of S1 and S2 Corporations. The corporations currently are filing separate tax returns. P and S1 are profitable. S2 is a start-up company that has reported losses f...

Q: The president of your CPA firm’s largest client, a medium-

The president of your CPA firm’s largest client, a medium-size manufacturing company, advises you that the firm is about to acquire its largest supplier. Both companies have been profitable for the pa...

Q: During what time period can an affiliated group elect to file a

During what time period can an affiliated group elect to file a consolidated tax return? How does it make the election? During what time period can it request to terminate its consolidation?

Q: For which of the following tax-related matters can an affiliated

For which of the following tax-related matters can an affiliated group’s parent corporation act as the group’s agent? a. Consent by a subsidiary corporation to the filing of a consolidated tax retu...

Q: What minimum level of stock ownership does the IRC require for a

What minimum level of stock ownership does the IRC require for a corporation to be included in an affiliated group?

Q: Jerry transfers to Emerald Corporation property having a $32,000

Jerry transfers to Emerald Corporation property having a $32,000 adjusted basis and a $50,000 FMV in exchange for all of Emerald’s stock worth $15,000 and Emerald’s assumption of a $35,000 mortgage on...

Q: Which of the following entities are includible in an affiliated group (

Which of the following entities are includible in an affiliated group (if the 80% stock ownership requirements are met)? a. Domestic C corporation. b. Foreign corporation. c. Life insurance company...