Questions from Federal Taxation

Q: Lonergan, Inc., a calendar year S corporation in Athens,

Lonergan, Inc., a calendar year S corporation in Athens, Georgia, had a balance in AAA of $200,000 and AEP of $110,000 on December 31, 2017. During 2018, Lonergan, Inc., distributes $140,000 to its sh...

Q: Cougar, Inc., is a calendar year S corporation. Cougar’s

Cougar, Inc., is a calendar year S corporation. Cougar’s Form 1120S shows non-separately stated ordinary income of $80,000 for the year. Johnny owns 40% of the Cougar stock throughout the year. The fo...

Q: Money, Inc., a calendar year S corporation in Denton,

Money, Inc., a calendar year S corporation in Denton, Texas, has two unrelated shareholders, each owning 50% of the stock. Both shareholders record a $400,000 stock basis as of January 1. At the begin...

Q: Osprey Corporation stock is owned by Pedro and Pittro, who are

Osprey Corporation stock is owned by Pedro and Pittro, who are unrelated. Pedro and Pittro each own 50% of the stock in the corporation. Osprey has the following assets (none of which were acquired in...

Q: Assume the same facts as in Problem 36, except that the

Assume the same facts as in Problem 36, except that the two shareholders consent to an AAA bypass election. Facts from problem 36 Money, Inc., a calendar year S corporation in Denton, Texas, has two...

Q: At the beginning of the tax year, Lizzie holds a $

At the beginning of the tax year, Lizzie holds a $10,000 stock basis as the sole shareholder of Spike, Inc., an S corporation. During the year, Spike reports the following. Determine Lizzie’s stock ba...

Q: Assume the same facts as in Problem 38, except that the

Assume the same facts as in Problem 38, except that the cash distribution to Lizzie amounts to $40,000. Determine Lizzie’s stock basis at the end of the year and the treatment of her cash distribution...

Q: A calendar year S corporation reports an ordinary loss of $80

A calendar year S corporation reports an ordinary loss of $80,000 and a capital loss of $20,000. Mei Freiberg owns 30% of the corporate stock and has a $24,000 basis in her stock. Determine the amount...

Q: Whindy Corporation, an S corporation, reports a recognized built-

Whindy Corporation, an S corporation, reports a recognized built-in gain of $80,000 and a recognized built-in loss of $10,000 this year. Whindy holds an $8,000 unexpired NOL carryforward from a C corp...

Q: Flint, an S corporation with substantial AEP, reports operating revenues

Flint, an S corporation with substantial AEP, reports operating revenues of $410,000, taxable interest income of $390,000, operating expenses of $260,000, and deductions attributable to the interest o...