sam transfers assets to tiger corporation, subject to sec 351 inventory fmv 40000 and AB 50000...

sam transfers assets to tiger corporation, subject to sec 351

inventory fmv 40000 and AB 50000

equipment fmv 60000 and AB 50000

investment with Fmv 100000 and AB 10000

total fmv 200000, Ab 110000

in addition to stock sam receives 60000 cash

what is the gain/loss sam tecognized?

what is the gain/loss does the corp. recognized

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

To qualify for Sec. 351, a sole proprietor must be in control of the receiving corporation...

To qualify for Sec. 351, a sole proprietor must be in control of the receiving corporation immediately after the exchange of assets for the corporation’s stock. “Control” for this purpose means ownership of stock amounting to at least: a) 50% b) 51% c) 66.67% d) 80% e) None of the above

3. Jack and Carter formed Sheriff Inc., a C-Corporation. Jack transfers land (FMV $450,000 and adjusted...

3. Jack and Carter formed Sheriff Inc., a C-Corporation. Jack transfers land (FMV $450,000 and adjusted basis of $50,000) for 50% of the stock in the corporation. Carter transfers equipment (FMV 450,000 adjusted basis of $500,000) and will provide legal services worth $250,000 to Sheriff Inc. to draft corporate operating agreements for 50% of the stock in the corporation. a. Will the transfer qualify under §351 as a tax free transfer? Explain. b. What are the tax consequences to Jack...

John and Lydia form Fusco Inc., a C-Corporation. Lydia transfers land (FMV $100,000 and adjusted basis...

John and Lydia form Fusco Inc., a C-Corporation. Lydia transfers land (FMV $100,000 and adjusted basis of 100,000) and agrees to provide legal services to draft the organization documents worth $190,000 for 50% of the stock in the corporation. John transfers equipment (FMV $310,000 adjusted basis of $75,000 for 50% of the stock in the corporation and $20,000 cash. The value of the stock received is $290,000 for each John and Lydia. (8 points) a. Will the transfer qualify under...

White Corporation owns a rental building (its only asset) with a gross FMV of $1,000, subject...

White Corporation owns a rental building (its only asset) with a gross FMV of $1,000, subject to a nonrecourse mortgage of $400. White’s adjusted basis for this building is $300. Abby owns all of White’s stock, with a total basis of $100. White has $200 of E&P. White is on the accrual method of accounting and reports on the calendar year. Assume that the corporate tax payable by White on $700 gain is $250 and on $600 gain is $200....

TJ Magnasen contributed assets with a $200,000 adjusted basis and a $525,000 FMV to Adelante Corporation...

TJ Magnasen contributed assets with a $200,000 adjusted basis and a $525,000 FMV to Adelante Corporation in exchange for all of its stock. The corporation conducted operations for five years and was liquidated. TJ received the following in a liquidating distribution: $615,000 cash (less federal income taxes of 21% owed on the liquidation by the corporation) The assets that he had originally contributed, which now have a $150,000 adjusted basis and a $615,000 FMV. a) What are the tax consequences...

Tom incorporates his sole proprietorship as Total Corporation and transfers its assets to Total in exchange...

Tom incorporates his sole proprietorship as Total Corporation and transfers its assets to Total in exchange for all 100 shares of Total stock and four $10,000 interest-bearing notes. The stock has a $125,000 FMV. The notes mature consecutively on the first four anniversaries of the incorporation date. The assets transferred are as follows: Assets Adjusted Basis FMV Cash $ 5,000 $ 5,000 Equipment $130,000 Minus: Accumulated depreciation (70,000) 60,000 90,000 Building $100,000 Minus: Accumulated depreciation (49,000) 51,000 40,000 Land 24,000...

Knight Corporation, a C Corp, disposed of the following assets, all Sec 1231 property, during 2019:...

Knight Corporation, a C Corp, disposed of the following assets, all Sec 1231 property, during 2019: Asset Deprec Method Cost Accum Deprec Adj. Basis Sale Price Equipment#1 Equipment#2 Building Land MACRS – DDB MACRS – DDB MACRS - SL N/A $55,000 $32,000 $110,000 $45,000 $40,000 $11,000 $50,000 $0 $15,000 $21,000 $60,000 $45,000 $23,000 $30,000 $135,000 $55,000 Question A: How much is Knight Corporation's Sec 1245 ordinary income recapture? Question B: How much is Knight Corporation's Sec 1250 ordinary income recapture?...

Robinson Corporation maintains a perpetual inventory system. All sales on account are subject to terms of...

Robinson Corporation maintains a perpetual inventory system. All sales on account are subject to terms of 2/10, n/30. Discounts are taken and granted only when the terms are met. The cost of all inventory sold in December was 80% of the sales price. Transactions for the month of December are as follows: Dec 3 Received a check from Swanson Brothers Construction in full payment of invoice dated November 26. The invoice amount was $24,050. 3 Sold sewer and drainage pipe to Beverly’s Building Products on account for $13,150. 3 Purchased copper tubing and fittings from Edward’s Plumbing Supplies Inc. on account for...

Assume ABC Corporation has Cash, A/R, and Inventory as its only Current Assets and PPE as...

Assume ABC Corporation has Cash, A/R, and Inventory as its only Current Assets and PPE as the only Long-Term Asset. Given the following information calculate the PPE for ABC Corporation. Collection period = 40 days, Days sales in cash = 15 days, Current ratio = 2.4, inventory turnover = 3 times, liabilities to assets = 80%, payables period = 45 days, cash = $400,000, inventory = $800,000, total assets = $4,500,000. Please show work so that I can learn how...

Analyzing Effects of LIFO on Inventory Turnover Ratios The current assets of Exxon Mobil Corporation follow:...

Analyzing Effects of LIFO on Inventory Turnover Ratios The current assets of Exxon Mobil Corporation follow: $ millions 2014 2013 Current assets Cash and cash equivalents $4,658 $4,913 Notes and accounts receivable, less estimated doubtful amounts 28,009 33,152 Inventories: Crude oil, products and merchandise 12,384 12,117 Materials and supplies 4,294 4,018 Other current assets 3,565 5,108 Total current assets $52,910 $59,308 In addition, the following note was provided in its 2014 10-K report: Inventories. Crude oil, products, and merchandise inventories...

Subjects