Questions from Federal Taxation

Q: Perch, Inc., an exempt organization, records unrelated business taxable

Perch, Inc., an exempt organization, records unrelated business taxable income of $4 million. a. Calculate Perch’s UBIT. b. Prepare an outline of a presentation you are going to give to the new member...

Q: Hart Enterprises, a U.S. corporation, owns 100

Hart Enterprises, a U.S. corporation, owns 100% of OK, Ltd., an Irish corporation. OK’s gross income for the year is $10 million. Determine OK’s Subpart F income (before any expenses) from the transac...

Q: Emma, a U.S. resident, received the following

Emma, a U.S. resident, received the following income items for the current tax year. Identify the sourcing of each income item as either U.S. or foreign. a. $600 interest from a savings account at a...

Q: BlueCo, a domestic corporation, incorporates GreenCo, a new wholly

BlueCo, a domestic corporation, incorporates GreenCo, a new wholly owned entity in Germany. Under both German and U.S. legal principles, this entity is a corporation. BlueCo faces a 35% U.S. tax rate....

Q: Your client, Rich N. Ready, has come to you

Your client, Rich N. Ready, has come to you for advice. Rich is interested in many social welfare issues (e.g., access to higher education, welfare reform, and abortion rights). He wishes to use his w...

Q: Discuss the tax consequences to the parent corporation in a § 332

Discuss the tax consequences to the parent corporation in a § 332 liquidation of a subsidiary.

Q: True Corporation, a wholly owned subsidiary of Trumaine Corporation, generated

True Corporation, a wholly owned subsidiary of Trumaine Corporation, generated a $400,000 taxable loss in its first year of operations. True’s activities and sales are restricted to...

Q: Assume the same facts as in Problem 48, and assume that

Assume the same facts as in Problem 48, and assume that Suz-Anna prepares the capital account roll forward on the partners’ Schedules K–1 on a tax basis. Facts from Problem 48 Suzy contributed assets...

Q: Assume the same facts as in Problem 48, except that Suz

Assume the same facts as in Problem 48, except that Suz-Anna was formed as an LLC instead of a general partnership. Facts from Problem 48, Suzy contributed assets valued at $360,000 (basis of $200,00...

Q: A subsidiary corporation is liquidated under § 332. Pursuant to its

A subsidiary corporation is liquidated under § 332. Pursuant to its liquidation, the subsidiary distributed property to a minority shareholder. With respect to this distribution, what are the tax cons...