• Q : Adjusted basis in the shares....
    Accounting Basics :

    Jennifer owns 1,000 shares of Ernie Company. Her adjusted basis in the shares is $100,000. Ernie Company has no earnings and profits. It made a cash distribution to its shareholders, of which Jennif

  • Q : Amount of cookies gain on the distribution....
    Accounting Basics :

    Cookies Corporation distributed land to its sole shareholder. On the date of distribution, the land had a fair market value of $85,000 and an adjusted basis to Cookies of $42,000. What is the amount

  • Q : Transactions reclassified as a constructive dividend....
    Accounting Basics :

    Harold owns 100 percent of Clawson Company. Clawson's E&P is $500,000. Harold needs to withdraw $100,000 from the company. Which of the following transactions might be reclassified as a construc

  • Q : Deferred tax liability-income taxes payable....
    Accounting Basics :

    Assume corporate tax rates are a constant 35%. Elco started operations at the beginning of this year. Its book income is $10 million and its taxable income is $13 million. The difference will give r

  • Q : Future taxable income....
    Accounting Basics :

    Future, Inc. reported the following results for the year: Future's taxable income for the year was:

  • Q : Basis of direct labor dollars....
    Accounting Basics :

    If the overhead were distributed on the basis of direct labor dollars, what would the percentage rate be?

  • Q : Impact of financial scandals....
    Accounting Basics :

    Discuss how the status of the accounting profession, both in your country and internationally, has been impacted by financial scandals in the recent past and describe what measures have been taken t

  • Q : Introduction to debtor-creditor relationship....
    Accounting Basics :

    How should Satsuki treat the loss relating to this debt (assume that the debt is a nonbusiness debt that is a bona fide debt that arose from a debtor-creditor relationship)?

  • Q : Casualty loss deduction....
    Accounting Basics :

    Immediately after the casualty, the truck had a fair market value of $20,000. Because of the truck damage, Amy's insurance company provided $10,000 as a reimbursement in 2013. What was Amy's 2013 ca

  • Q : Stock after the redemption....
    Accounting Basics :

    Assume that Medium Inc.'s current earnings and profits were $200,000, there were no accumulated earnings and profits, and Linda's total basis in her stock before the redemption was $20,000. How much

  • Q : Taxable income for the present taxable year....
    Accounting Basics :

    Corporation also received a $600,000 dividend from a 10 percent-owned corporation. How much is Corporation's taxable income for the current taxable year?

  • Q : Problem on amount of the unrecognized gain....
    Accounting Basics :

    A tract of land was distributed by MNO Inc. to its sole shareholder, Martha, as a dividend. At the time of the distribution, MNO Inc.'s adjusted basis in the land was $40,000, the fair market value

  • Q : Adjusted basis in the home....
    Accounting Basics :

    John used $150,000 of the refinance money to build an extension on the home. John's adjusted basis in the his home is:

  • Q : Taxable income for the current taxable year....
    Accounting Basics :

    Corporation also received a $600,000 dividend from a 10 percent-owned corporation. How much is Corporation's taxable income for the current taxable year?

  • Q : Problem on liquidating distribution....
    Accounting Basics :

    Big Corporation distributed land to its sole shareholder, Little Corporation, in a liquidating distribution. At the time of the distribution, the land had a fair market value of $240,000 and Big Co

  • Q : Shares of authorization....
    Accounting Basics :

    transferred to Kal 90 shares of authorized but not previously issued stock of MNO Inc. How much gain does Kal realize and recognize as a result of these transfers?

  • Q : Basics of adjusted basis in the stock....
    Accounting Basics :

    On the same day, and in exchange for the building she transferred to SUECO Inc., Sue received 100 percent of SUECO's only class of stock. What is Sue's adjusted basis in the stock she received from

  • Q : Problem related to result of transaction....
    Accounting Basics :

    On the same day, and in exchange for the property he transferred to TJ Inc., Tom received cash of $15,000 and an additional 55 shares of stock worth $55,000. How much gain was recognized by Tom as a

  • Q : Shareholder as a result of distribution....
    Accounting Basics :

    How much was the total dividend income received by the shareholder as a result of the distribution made by XYZ Corporation?

  • Q : Gain recognition as a result of the transaction....
    Accounting Basics :

     In exchange for the assets transferred to ABC Corporation, Al received additional stock of ABC Corporation. How much gain did Al recognize as a result of this transaction?

  • Q : Dividends-received deduction problem....
    Accounting Basics :

    For the current taxable year, RST Inc.'s gross income from operations was $1,000,000 and its expenses from operations were $1,500,000. RST Inc. also received a $600,000 dividend from a 10 percent-ow

  • Q : Deduction for the current taxable year....
    Accounting Basics :

    How much is NOP Inc.'s charitable contribution deduction for the current taxable year?

  • Q : Taxable income or a net operating loss....
    Accounting Basics :

    For the current taxable year, HIJ Inc. has taxable income or a net operating loss of what amount?

  • Q : Basis in the real estate....
    Accounting Basics :

    In exchange for her stock, Paula receives real estate with an $8,000 basis and a $15,000 fair market value that is subject to a $2,000 mortgage, and also receives cash of $5,000. What is Paula's bas

  • Q : Gain on the sale of the apartment....
    Accounting Basics :

    If there is no other Section 1231 gain (loss) during the year, how will the gain on the sale of this apartment building be treated?

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