CengageNOWv2, 1 term Printed Access Card for Hoffman/Young/Raabe/Maloney/Nellen's South-Western Federal Taxation 2018: Individual Income Taxes, 41st
41st Edition
ISBN: 9781337389518
Author: William H. Hoffman, James C. Young, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Question
Chapter 17, Problem 16DQ
To determine
State whether the corporation recognize a gain, and identify the character of the gain.
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3. Omega Corporation purchased a motor vehicle worth P1,400,000 for the use of its executive. It was
registered under the executive's name despite the agreemnt that it should be used partly for the company's
benefit. How much is the fringe benefits tax?
(3) XYZ Corporation redeems a portion of its stock owned by one of its shareholders, Black.
The corporation redeems Black's shares by distributing to him a parcel of real property with
a FMV of $420,000 and an adjusted basis in the hands of XYZ Corporation of $245,000.
What is the amount of gain, if any; XYZ Corporation will recognize that under the
following circumstances?
(a) The redemption fails to satisfy any of the tests of §302(b) and therefore fails to fit within
the provisions of §302(a) and is required to be tested under §301?
(b) The redemption satisfies the test set forth in §302(b)(2) and therefore does fit within the
provisions of §302(a).
Select the best answer.
Which of the following statements regarding transfers of property or services is true?
For a transfer of property to a corporation, no gain is recognized by the taxpayer if the
O A. transferred property is encumbered with liabilities in excess of the taxpayer's basis in the
property.
O
O
O
If receipt of stock is subject to a substantial risk of forfeiture, income is recognized by th
B. recipient in the year the stock is received even though the substantial risk of forfeiture h
lapsed.
If the contributing partner receives a capital interest in the partnership upon contributi
C. services, the contributor will be taxed on the transfer when the contributor actually rec
profits.
In order for an exchange of services to a partnership for a profit interest to qualify as a
D. nontaxable event, the service partner must provide services to the partnership or for it
benefit, and the services must be provided by the service partner in his capacity as a p
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Chapter 17 Solutions
CengageNOWv2, 1 term Printed Access Card for Hoffman/Young/Raabe/Maloney/Nellen's South-Western Federal Taxation 2018: Individual Income Taxes, 41st
Ch. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - Prob. 5DQCh. 17 - A depreciable business dump truck has been owned...Ch. 17 - Prob. 10DQCh. 17 - Prob. 11DQCh. 17 - Prob. 12DQCh. 17 - Prob. 13DQ
Ch. 17 - Prob. 15DQCh. 17 - Prob. 16DQCh. 17 - Prob. 17DQCh. 17 - Prob. 18DQCh. 17 - Prob. 19DQCh. 17 - Prob. 20DQCh. 17 - Prob. 21CECh. 17 - Prob. 22CECh. 17 - Prob. 23CECh. 17 - Prob. 24CECh. 17 - Prob. 25CECh. 17 - Prob. 26CECh. 17 - Prob. 27CECh. 17 - Prob. 28CECh. 17 - Prob. 29CECh. 17 - Prob. 30CECh. 17 - Prob. 31PCh. 17 - Prob. 32PCh. 17 - LO.2 A sculpture that Korliss Kane held for...Ch. 17 - Prob. 34PCh. 17 - Prob. 35PCh. 17 - Prob. 36PCh. 17 - Prob. 37PCh. 17 - Prob. 38PCh. 17 - Prob. 39PCh. 17 - Prob. 40PCh. 17 - Prob. 41PCh. 17 - Prob. 43PCh. 17 - Joanne is in the 24% tax bracket and owns...Ch. 17 - Prob. 45PCh. 17 - Prob. 46PCh. 17 - Prob. 47PCh. 17 - Prob. 48PCh. 17 - Prob. 49PCh. 17 - Prob. 50PCh. 17 - Prob. 51PCh. 17 - Prob. 52PCh. 17 - Prob. 53PCh. 17 - Prob. 54PCh. 17 - Jay sold three items of business equipment for a...Ch. 17 - Prob. 1RPCh. 17 - Prob. 2RPCh. 17 - Prob. 3RPCh. 17 - Prob. 4RPCh. 17 - Prob. 1CPACh. 17 - Prob. 2CPACh. 17 - Jerry uses a building for business purposes. The...Ch. 17 - Prob. 4CPACh. 17 - Prob. 5CPACh. 17 - Prob. 6CPACh. 17 - Wally, Inc., sold the following three personal...Ch. 17 - Net Section 1231 losses are: a. Deducted as a...Ch. 17 - Prob. 9CPACh. 17 - Prob. 10CPA
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Similar questions
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- A corporation sells property (basis of $750,000) to its sole shareholder for $450,000, the fair market value of the property. With respect to the sale: MPC Corporation makes a property distribution on 12/31/16 to its sole shareholder, Jon. The property distributed is a house (fair market value of $400,000; basis of $300,000) that is subject to a $150,000 mortgage that Jon assumes. Before considering the consequences of the distribution, MPC’s current E & P before the distribution is $175,000 and its accumulated E & P is $100,000. MPC makes no other distributions during the current year. What is MPCs taxable gain on the distribution of the house? What is MPC’s current E&P after the distribution on 12/31/16? What is Jon’s taxable gain (if any) and what type of gain is it? What is Jon’s basis in the house?arrow_forwardJ6. Which of the following statements is correct regarding rental properties? A. Each rental property purchased that cost $50,000 or more must be placed in a separate CCA class. B. Rental losses from CCA can be used to shield income from employment or from business. C. A corporation whose principle business is property rental or leasing cannot create a loss by CCA. D. CCA deductions can create or increase a net loss from all of a taxpayer’s rental properties combined.arrow_forwardAn S corporation is generally restricted to the calendar year end to mitigate tax deferral. True or False Juke, an S Corporation, distributes a parcel of land to Shannon, one of its shareholders. The land has a basis of $10,000 and a fair market value of $20,000. This distribution will cause Shannon to recognize a share of the deemed gain. True or Falsearrow_forward
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