Questions from Federal Taxation

Q: Doris, Walt, and Pat form Swan Corporation with the following

Doris, Walt, and Pat form Swan Corporation with the following investments: In addition to the 500 shares of stock, Pat receives $100,000 in cash from Swan Corporation. Assume that each share of Swan...

Q: Elton, Neil, Courtney, and Zelma from Ecro Corporation with

Elton, Neil, Courtney, and Zelma from Ecro Corporation with the following investments: In addition to its stock, Ecru distributes cash as follows: $10,000 to Neil, $20,000 to Courtney, and $100,000...

Q: Lily is sole shareholder of Crimson Corporation (a C corporation).

Lily is sole shareholder of Crimson Corporation (a C corporation). At a time when Crimson has a deficit in accumulated E & P of $90,000 and current E & P of $65,000, it distributes a cash dividend of...

Q: Harold, Marcia, and Richard are equal shareholders in Pelican Corporation

Harold, Marcia, and Richard are equal shareholders in Pelican Corporation, a calendar year C corporation. During the current year, Pelican makes a $150,000 distribution to its three shareho1ders. Of t...

Q: The stock of Emerald Corporation is held equally by Barney and Faye

The stock of Emerald Corporation is held equally by Barney and Faye The shareholders would like to receive, as a dividend, value of $800,000 each. The corporation has the following asset that it can s...

Q: During the current year, Thrasher (a calendar year, accrual

During the current year, Thrasher (a calendar year, accrual basis S corporation) has the following transactions: a. Determine Thrasher Corporation's separately stated items for the current year. b....

Q: Assume the same facts as in Problem 56. Kirby Turner is

Assume the same facts as in Problem 56. Kirby Turner is a 20% shareholder in Thrasher Corporation. She is aware of the tax consequences of the various items listed on the Schedule K- 1 (Form 1120S) sh...

Q: Jim Olsen owns all of the stock in Drake, a ca1endar

Jim Olsen owns all of the stock in Drake, a ca1endar year S corporation. For ca1endar year 2018, Drake anticipates an operating loss of $160,000 and cou1d, if deemed worthwhile, sell a stock investmen...

Q: Ida owns 30% of the stock in Mockingbird, a ca1endar

Ida owns 30% of the stock in Mockingbird, a ca1endar year S corporation. Her basis in the stock as of January 1, 2018, is $130,000. Mockingbird has an operating loss of $500,000 in 2018 and an operati...

Q: Guy, Alma, and Kara form the Ivory Partnership. In

Guy, Alma, and Kara form the Ivory Partnership. In exchange for a 30% capital interest, Guy transfers property (basis of $200,000; fair market value of $400,000) subject to a liability of $100,000. Th...