Reference no: EM13126636
Heather, an individual, owns all of the outstanding stock in Silver Corporation. Heather purchased her stock in Silver nine years ago, and her basis is $56,000. At the beginning of this year, the corporation has $76,000 of accumulated E&P and no current E&P (before considering the effect of the distributions). What are the tax consequences to Heather (amount and type of income and basis in property received) and Silver Corporation (gain or loss and effect on E&P) in each of the following situations?
a. Silver distributes land to Heather. The land was held as an investment and has a fair market value of $54,000 and an adjusted basis of $42,000.
b. Assume that Silver has no current or accumulated E&P prior to the distribution. How would your answer to (a) change?
c. Assume that the land distributed in (a) is subject to a $46,000 mortgage (which Heather assumes). How would your answer change?
d. Assume that the land has a fair market value of $54,000 and an adjusted basis of $62,000 on the date of the distribution. How would you answer to (a) change?
|
Illustrate what type of gain or loss will susan have on sale
: She had purchased the word processor three years ago for $950 and has taken $300 in depreciation. Explain how much and what type of gain or loss will Susan have on the sale?
|
|
What are the different ways to estimate bad debt
: What are the different ways to estimate bad debt? How does this affect net income? What does Generally Accepted Accounting Principles (GAAP) require? Why? Should all companies have bad debt? Explain your answer.
|
|
Probability-line interval between two consecutive lights
: An interval from 0 to 90 minutes what is the probability that the line interval between two consecutive defective lights will be less than 10 minutes.
|
|
Quarterly compounding of interest
: Kurt Daniels wants to buy a $30,000 car. He has saved $27,000. Find the number of years it will take for his $27,000 to grow to $30,000 at 4% interest compound quarterly.
|
|
Illustrate what are the tax consequences to heather
: Illustrate what are the tax consequences to Heather (amount and type of income and basis in property received) and Silver Corporation (gain or loss and effect on E&P) in each of the following situations?
|
|
Stiff spring motion
: The displacement s cm of the end of a stiff spring at time t seconds is given by: s = a (e^-kt) sin 2πft. Determine the velocity and acceleration of the end of the spring after 2 seconds if a = 3, k = 0.75 and f = 20.
|
|
Semi-empirical expression for a dilute real solution
: Semi-Empirical Expression for a Dilute Real Solution, Starting with the definition of osmotic pressure
|
|
Determine the unit sales to attain that target profit
: Guagliano Corporation produces and sells a single product whose selling price is $110.00 per unit and whose variable expense is $29.70 per unit. The company's monthly fixed expense is $345,290.
|
|
Computing the riemann sum
: Let f(x) = x^3, and compute the Riemann sum of f over the interval [6, 7], choosing the representative points to be the midpoints of the subintervals and using the following number of subintervals (n). (Round your answers to two decimal places.)
|