Q: Assume the same facts as in Problem 32, except that the
Assume the same facts as in Problem 32, except that the group members have adopted the relative tax liability tax-sharing method.
See AnswerQ: Ramon and Sophie are the sole shareholders of Gull Corporation. Ramon
Ramon and Sophie are the sole shareholders of Gull Corporation. Ramon and Sophie each have a basis of $100,000 in their 2,000 shares of Gull common stock. When its E & P was $700,000, Gull Corporation...
See AnswerQ: The consolidated tax liability for most affiliated groups is assigned among die
The consolidated tax liability for most affiliated groups is assigned among die parent and its subsidiaries-each entity is responsible for "its share" of the tax. The Regulations allow several methods...
See AnswerQ: Aqua Corporation is a retail operation specializing in pool equipment and outdoor
Aqua Corporation is a retail operation specializing in pool equipment and outdoor furniture. It is very interested in merging with Icterine Corporation, a lamp manufacturer; Aqua is very profitable, a...
See AnswerQ: Rufous Corporation just lost a $1.5 million product liability
Rufous Corporation just lost a $1.5 million product liability lawsuit. Its assets currently are worth $2 million, and its outstanding liabilities amount to $800,000 without considering the lawsuit los...
See AnswerQ: Puce has two individual shareholders, Abram and Carmella. The shareholders
Puce has two individual shareholders, Abram and Carmella. The shareholders purchased their stock in Puce four years ago at a cost of $500,000 each. For the past nine years, Puce has been engaged in tw...
See AnswerQ: Shepherd Corporation i5 considering acquiring RentCo by exchanging its stock (value
Shepherd Corporation i5 considering acquiring RentCo by exchanging its stock (value of $10 per share) for RentCo's only asset, a tract of land (adjusted basis of $150,000 and no liability). The yearly...
See AnswerQ: Child Corporation joined the Thrust consolidated group in year 1. At
Child Corporation joined the Thrust consolidated group in year 1. At the time it joined the group, Child held a $2 million NOL carryforward. On a consolidated basis, the members of Thrust generated si...
See AnswerQ: Cougar, Jaguar, and Ocelot corporations have filed on a consolidated
Cougar, Jaguar, and Ocelot corporations have filed on a consolidated, calendar year basis for many years. At the beginning of the tax year, the group elects to de-consolidate. The group's S6 million N...
See AnswerQ: Grand Corporation owns all of the stock of Junior, Ltd
Grand Corporation owns all of the stock of Junior, Ltd., a corporation that has been declared bankrupt and holds no net assets. Junior still owes $1 million to wholesale, Inc., one of its suppliers, a...
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