is the sole shareholder of Jan Ltd. Summer is the sole shareholder of SKY Co. Both of the companies are CCPCs. Jan and Summer will amalgamate their corporations as per Section 87(1) on July 21st, forming JS Ltd. Jan's shares in Jan Ltd. have an ACB of $1,000 and a fair market value of $24,500. Summer's shares in SKY Co. have an ACB of $1,500 and a fair market value of $45,500. Which of the following will apply with respect to the planned amalgamation? Multiple Choice The ACB of Jan's and Summer's shares in JS Ltd. will be $24,500 and $45,500, respectively JS Ltd.'s first taxation year will commence on July 22nd

is the sole shareholder of Jan Ltd. Summer is the sole shareholder of SKY Co. Both of the companies are CCPCs. Jan and Summer will amalgamate their corporations as per Section 87(1) on July 21st, forming JS Ltd. Jan's shares in Jan Ltd. have an ACB of $1,000 and a fair market value of $24,500. Summer's shares in SKY Co. have an ACB of $1,500 and a fair market value of $45,500. Which of the following will apply with respect to the planned amalgamation? Multiple Choice The ACB of Jan's and Summer's shares in JS Ltd. will be $24,500 and $45,500, respectively JS Ltd.'s first taxation year will commence on July 22nd

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter22: S Corporations

Section: Chapter Questions

Problem 27P

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Similar questions

Devi is the chief executive officer of Nishida Limited. Devi owns 20 percent of the common stock of Nishida. During the current year, Devis salary is 60,000 and he receives a 30,000 bonus. Nishida has taxable income of 200,000 and pays 80,000 in cash dividends. How much gross income does Devi have if a. Nishida is a corporation? b. Nishida is an S corporation?
Sam owns all of the shares of X Ltd. Sofia owns all of the shares of Y Ltd. The owners plan to combine their businesses by amalgamating the two corporations on September 1st of the current year. The shares of X have an ACB of $2,000 and are currently worth $100,000. The shares of Y have an ACB of $4,000 and are currently worth $130,000. X and Y are both Canadian corporations and have a December 31 taxation year-end. What is the ACB of the shares of the amalgamated corporation received by Sam? $
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Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The Dried Fruit Corp. stock is owned one-third by Raisin and two-thirds by Prune. All shareholders are US resident citizen individuals. At the beginning of the current year, Raisin's basis in his shares was $84,000 and Prune's basis in her shares was $28,000. During the current year, Dried Fruit Corp. earned $504,000 of net income from operations. Raisin's share was $168,000; Prune's share was $336,000. On December 31st, Dried Fruit Corp. distributed Grapeacre (real property) having a fair market value of $168,000, and a basis of $112,000, to Raisin and Plumacre (real property) having a fair market value of $336,000 and a basis of $308,000, to Prune. How much gain does Raisin recognize as a result of this transaction?
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