Questions from Federal Taxation

Q: Tammy Olsen has owned l00% of the common stock of Green

Tammy Olsen has owned l00% of the common stock of Green Corporation (basis of $75,000) since the corporation's formation in 2008. In 2015, when Green had E & P of $320,000, the corporation distributed...

Q: Certain Corporation is the parent entity in a Federal consolidated group for

Certain Corporation is the parent entity in a Federal consolidated group for corporate income tax purposes. When its wholly owned subsidiary, Likely, Inc., reports an operating profit, Certain's basis...

Q: The Rho Corporation was incorporated eight years ago by Tyee and Danette

The Rho Corporation was incorporated eight years ago by Tyee and Danette. Tyee received 5,000 shares of common stock for his $100,000 contribution, and Danette received 10,000 shares of con1mon stock...

Q: Beach Corporation, a seaside restaurant, is owned by 20 unrelated

Beach Corporation, a seaside restaurant, is owned by 20 unrelated shareholders. This year, Beach made the national news for polluting the surrounding beach and ocean with garbage; it was fined $200,00...

Q: Vincent is a 50% partner in the TAV Partnership. He

Vincent is a 50% partner in the TAV Partnership. He became a partner three years ago when he contributed land with a value of $60,000 and a basis of $30,000 (current value is $100,000). Tyler and Anit...

Q: Assume the same facts as Problem 31, except that TAV distributes

Assume the same facts as Problem 31, except that TAV distributes a $50,000 (FMV) interest in the land and $50,000 (FMV) of accounts receivable to Vincent and $25,000 of cash and $25,000 (FMV) of accou...

Q: Assume the same facts as in Problems 46 to 49. Assume

Assume the same facts as in Problems 46 to 49. Assume also the following: (I) Amy's ordinary business income from AM is qualified business income; (2) Amy's taxable income excluding capital gains is $...

Q: Which of the following statements is not true? a.

Which of the following statements is not true? a. Affiliated corporations that file consolidated returns can take a l00% dividends received deduction. b. The dividends received deduction for a small i...

Q: Gearty's adjusted basis in Worthington Company, a partnership, was $

Gearty's adjusted basis in Worthington Company, a partnership, was $ 18,000 at the time Gearty received the following non-liquidating distributions of partnership property: What is Gearty's tax basi...

Q: Desi's adjusted basis of her partnership interest was $40,000

Desi's adjusted basis of her partnership interest was $40,000 immediately before she received a distribution in full liquidation of her Makris partnership interest. The distribution consisted of $25,0...