Questions from Federal Taxation

Q: Through a ''Type B" reorganization, Golden Corporation acquired 90%

Through a ''Type B" reorganization, Golden Corporation acquired 90% of RetrieverCo stock by October 2 of the current tax year ending December 31. At the time the 90%. was acquired, RetrieverCo was wor...

Q: Through an acquisitive "Type D" reorganization, Border, Inc

Through an acquisitive "Type D" reorganization, Border, Inc., is merged into Collie Corporation on September 2 of the current calendar tax year. The Federal long-term tax-exempt rate for September is...

Q: Graeter Corporation acquired all of the stock of Lesser Corporation in 2014

Graeter Corporation acquired all of the stock of Lesser Corporation in 2014, and the entities have filed a state and Federal consolidated income tax return ever since. Now an audit notice from the sta...

Q: Burgundy, Inc., and Violet are equal partners in the calendar

Burgundy, Inc., and Violet are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment...

Q: Assume the same facts as in Problem 56. Assume that Burgundy

Assume the same facts as in Problem 56. Assume that Burgundy, Inc.'s annual guaranteed payment is increased to $120,000 starting on January 1, 2019, and the LLC's taxable income for 2018 and 2019 (aft...

Q: Sinopia completed a corporate restructuring transaction with Cyan on May 31 of

Sinopia completed a corporate restructuring transaction with Cyan on May 31 of the current year. Cyan distributed 30% of Sinopia's stock to its shareholders in exchange for all of their stock in Cyan....

Q: Zeta Corporation is interested in acquiring Tau Corporation through a "Type

Zeta Corporation is interested in acquiring Tau Corporation through a "Type A" reorganization on January 2 of the current year. Zeta is valued at $50 million and generates taxable incon1e of $5 millio...

Q: On December 31, 2017, Alpha Corporation, valued at $

On December 31, 2017, Alpha Corporation, valued at $10 million, acquired BetaCo when BetaCo was valued at $5 n1illion. BetaCo holds a capital loss carryforward of $220,000 and excess business credits...

Q: Through a ''Type A" reorganization, VizslaCo acquires 100% of

Through a ''Type A" reorganization, VizslaCo acquires 100% of Puli Corporation by exchanging 30% of its stock for all of Puli 's assets and liabilities. The VizslaCo stock was exchanged for all of the...

Q: Brown Corporation was organized seven years ago by Red Corporation (55

Brown Corporation was organized seven years ago by Red Corporation (55%), Blue Corporation (35%), and Yellow Corporation (10%). Brown has been quite successful and now owns assets worth $12 million (b...