Questions from Federal Taxation

Q: Jokan contributes a non-depreciable asset to the Mahali LLC in

Jokan contributes a non-depreciable asset to the Mahali LLC in exchange for a one-fourth (25%) interest in the capital, profits, and losses of the LLC. The asset has an adjusted tax basis to Jokan and...

Q: Put owned all of the stock of Call when the two corporations

Put owned all of the stock of Call when the two corporations were formed a decade ago. The group immediately elected to file on a consolidated basis. Now Cali's management team has purchased the compa...

Q: Parent Corporation's current-year taxable income included S 100,000

Parent Corporation's current-year taxable income included S 100,000 net income from operations and a $10,000 net long-term capital gain. Parent also made a $5,000 charitable contribution. SubCo genera...

Q: Indigo Corporation wants to transfer cash of S 150,000 or

Indigo Corporation wants to transfer cash of S 150,000 or property worth $150,000 to one of its shareholders, Linda, in a redemption transaction that will be treated as a qualifying stock redemption....

Q: Citron enters into a “Type C" restructuring with Ecru.

Citron enters into a “Type C" restructuring with Ecru. Ecru transfers $800,000 of its voting stock for Citron's $1.2 million asset5 (basis $600,000) and $400,000 liabilities. Citron retains one asset,...

Q: Parent and Child corporations have filed on a consolidated basis since the

Parent and Child corporations have filed on a consolidated basis since the mid-1970s. The group reports the following amounts for the current tax year. What is the Parent group's net operating loss fo...

Q: Velocity, Inc., a foreign corporation, earned $500,

Velocity, Inc., a foreign corporation, earned $500,000 U.S.-source income from royalties that it collected, and $400,000 interest from it5 investment in U.S. Treasury bonds. Compute Velocity's U.S. in...

Q: Whitney Corporation acquires Jessamine Corporation. Prior to the merger, Jessamine

Whitney Corporation acquires Jessamine Corporation. Prior to the merger, Jessamine accumulated a $12,000,000 NOL. After the reorganization, Whitney generates $30,000,000 of taxable income. Whitney is...

Q: On January 4, 2018, Martin Corporation acquires two properties from

On January 4, 2018, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under § 351. The shareholder's basis, the fai...

Q: Green Corporation's assets are valued at $920,000 after payment

Green Corporation's assets are valued at $920,000 after payment of all corporate debts, except for $134,000 of taxes payable on net gains it recognized on the liquidation. Bruno, an individual and the...