User Account

All Pages

How much total gain must corp sub recognize

Assignment Help Accounting Basics
Reference no: EM132796176

Question - FACTS: A, an individual, owns 15% of all the stock in Corp. Sub.

A's stock in Corp. Sub has a FMV of $1,500, an adjusted basis of $750, and a holding period of 2 years. Corp. X owns the remaining 85% of Corp. Sub's stock. Corp. X's stock in Corp. Sub has a FMV of $8,500, an adjusted basis of $5,000, and a holding period of 2 years.

Corp. Sub will completely liquidate. Corp. Sub owns two assets at the time of its liquidation. Asset #1 has a FMV of $1,500, an adjusted basis of $600 and a holding period of 2 years. Asset #2 has a FMV of $8,500, an adjusted basis of $6000, and a holding period of 2 years. Corp. Sub distributes Asset #1 to A and Asset #2 to Corp. X in complete liquidation.

Required -

1. How much total gain, if any, must Corp. Sub recognize?

2. How much total gain, if any, must individual A recognize?

3. How much total gain, if any, must Corp. X recognize?

4. What basis does individual A have in Asset #1?

5. What basis does Corp. X have in Asset #2?

Reference no: EM132796176

Questions Cloud

Draft the journal entries to record the issue of the bond : Draft the journal entries to record the issue of the bond, the payment of interest on July 1, and the December 31 accrual entry
Describe the aspect of cross-cultural management : Your final research paper will be based on a topic of your choice related to an aspect of cross-cultural management examined in this course (see list provided).
What is the impact of the control weaknesses : Jane prints off the sales by customer every month and uses this information to calculate commissions. What is the impact of the control weaknesses
What are your formal and personal bases of power : Let's talk about what are your formal and personal bases of power? Create a written plan for increasing your power for all five bases.
How much total gain must corp sub recognize : A's stock in Corp. Sub has a FMV of $1,500, an adjusted basis of $750, and a holding period of 2 years. How much total gain must Corp Sub recognize
What is the present value of the common equity : The appropriate cost of equity capital, to ABC, is 14%. What is the present value of the common equity to the shareholders of XYX corporation
What is the materials quantity variance : The company has established these standards: Price per pound of materials: $12.00. What is the materials quantity variance
Describe the concept or theory to your organization : Write a paper addressing the organizational development concept of change management and apply it to the General Dynamics organization.
Calculate the terminal value of the plan : Calculate the terminal value of the 401(k) plan for Option 2, assuming all returns and contributions remain constant over the 15 years

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the opportunity cost of going to the game

Your best friend offered you $130 for the ticket now that the team is doing well. The opportunity cost of going to the game is

  What is the unit contribution margin per unit

the accounting manager has determined that their unit sales price is $25 per bearing. What is the unit contribution margin per unit

  Yang corporation wholesales repair products to equipment

yang corporation wholesales repair products to equipment manufacturers. on may 1 2014 yang corporation issued 20000000

  Prepare general journal entry to record interest payment

Interest is payable each June 30 and December 31. Prepare the general journal entry to record the first interest payment on June 30, 2009

  The current portion of long term debt is balance sheet item

The current portion of long-term debt is a balance sheet item for Universal Products Company. How would it most likely be classified on the balance sheet?

  Work in process consisted of two jobs no 101 20400 and no

general corporation employs a job order cost system. on may 1 the following balances were extracted from the general

  What the total conversion costs for the period were

What the total conversion costs for the period were? It added 14,800 units of direct materials during the period at a cost of $103,600; 11,100 units

  Primary goals of internal control

Write a 750- to 1,050-word paper in APA format, including citations and references, summarizing your ideas about internal controls. Includethe following: An introduction to internal controls, explaining in your own words the two primary goals of inte..

  What the inherent risks associated with expenditure cycle

What are the inherent risks associated with the expenditure cycle? What internal controls apply to the expenditure cycle

  Determining the basis for loss

Marsha Moore gave property with an adjusted basis of $28,000 to Alfred when the fair market value of the property was $25,000-What is Alfred’s basis for gain? What is his basis for loss?

  A company must decide between scrapping or reworking units

a company must decide between scrapping or reworking units that do not pass inspection. the company has 13000 defective

  Discuss how many units does the company need to sell to earn

Approximately how many units does the company need to sell to earn $10,000 in net income if the sales price per unit is $18

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd