Questions from Federal Taxation

Q: On December 31 of the current year, after receipt of his

On December 31 of the current year, after receipt of his share of partnership income, Fox sold his interest in a limited partnership for $50,000 cash plus relief of all liabilities. On that date, the...

Q: Krol Corp. distributed marketable securities in redemption of its stock in

Krol Corp. distributed marketable securities in redemption of its stock in a complete liquidation. On the date of distribution, these securities had a basis of $100,000 and a fair market value of $150...

Q: Determine whether the following transactions are taxable. If a transaction is

Determine whether the following transactions are taxable. If a transaction is not taxable, indicate what type of reorganization is effected, if any. a. Alpha Corporation owns assets valued at $400,000...

Q: A corporation was completely liquidated and dissolved during year 14. The

A corporation was completely liquidated and dissolved during year 14. The filing fees, professional fees, and other expenditures incurred in connection with the liquidation and dissolution are: a. Ded...

Q: Generally, in a direct distribution of assets to the shareholders that

Generally, in a direct distribution of assets to the shareholders that results in a complete corporate liquidation: a. There is no taxable event. b. The corporation recognizes no gain or loss because...

Q: Olinto Corp., an accrual basis calendar year C corporation, had

Olinto Corp., an accrual basis calendar year C corporation, had no corporate shareholders when it liquidated in year 12. In cancellation of all their Olinto Corp. stock, each Olinto Corp. shareholder...

Q: Lola owns a one-half interest in the Lenax LLC.

Lola owns a one-half interest in the Lenax LLC. Her basis in this ownership interest is $22,000 at the end of the year, after accounting for the calendar year LLC's current operations. On that date, t...

Q: When Magdalena's outside basis is $58,000, she receives

When Magdalena's outside basis is $58,000, she receives a liquidating distribution of S 15,000 cash and a proportionate share of inventory having a partnership basis of $20,000 and a fair market value...

Q: Matulis, Inc., a calendar year C corporation, owns a

Matulis, Inc., a calendar year C corporation, owns a single asset with a basis of $325,000 and a fair market value of $800,000. Matulis holds a positive E & P balance. The entity elects S corporation...

Q: Ten years ago, Dudley contributed land to the Prosperity LLC.

Ten years ago, Dudley contributed land to the Prosperity LLC. His basis in the land was $100,000. The fa ir market value at the contribution date was $115,000. This year, when the property's value was...