Nick is the 100% owner of Go Travel, Inc. a calendar year S corporation. Nick has a $500,000 stock basis as of January 1, 2019. During 2019, Go Travel had a taxable income of $100,000. At the end of 2019, Go Travel distributes equipment FMV $400,000, basis $300,000 to Nick. What is the taxable income for Nick for 2019? _________________ What is his stock basis at the end of 2019? __________________ What is his basis in the equipment at the end of 2019? _______________ Which of the following events would not terminate the S election? Nick sells some of his stock to Dome Partnership. Nick sells some of his stock to a non-resident alien. Go Travel, Inc. sells newly authorized preferred shares (i.e., preferred as to dividends) to Brian, a U.S. citizen. Nick consents to have the S election voluntarily revoked. Go Travel, Inc. sells newly authorized Class B non-voting common shares to Larry, a U.S. citizen.
Nick is the 100% owner of Go Travel, Inc. a calendar year S corporation. Nick has a $500,000 stock basis as of January 1, 2019. During 2019, Go Travel had a taxable income of $100,000. At the end of 2019, Go Travel distributes equipment FMV $400,000, basis $300,000 to Nick. What is the taxable income for Nick for 2019? _________________ What is his stock basis at the end of 2019? __________________ What is his basis in the equipment at the end of 2019? _______________ Which of the following events would not terminate the S election? Nick sells some of his stock to Dome Partnership. Nick sells some of his stock to a non-resident alien. Go Travel, Inc. sells newly authorized preferred shares (i.e., preferred as to dividends) to Brian, a U.S. citizen. Nick consents to have the S election voluntarily revoked. Go Travel, Inc. sells newly authorized Class B non-voting common shares to Larry, a U.S. citizen.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter15: S Corporations
Section: Chapter Questions
Problem 27P
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Question
Nick is the 100% owner of Go Travel, Inc. a calendar year S corporation. Nick has a $500,000 stock basis as of January 1, 2019. During 2019, Go Travel had a taxable income of $100,000. At the end of 2019, Go Travel distributes equipment FMV $400,000, basis $300,000 to Nick.
- What is the taxable income for Nick for 2019? _________________
- What is his stock basis at the end of 2019? __________________
- What is his basis in the equipment at the end of 2019? _______________
Which of the following events would not terminate the S election?
- Nick sells some of his stock to Dome
Partnership . - Nick sells some of his stock to a non-resident alien.
- Go Travel, Inc. sells newly authorized
preferred shares (i.e., preferred as to dividends) to Brian, a U.S. citizen. - Nick consents to have the S election voluntarily revoked.
- Go Travel, Inc. sells newly authorized Class B non-voting common shares to Larry, a U.S. citizen.
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