Usco a domestic corporation has worldwide taxable income of

Reference no: EM13622296

1. USCo, a domestic corporation, has worldwide taxable income of $1,500,000, including a $300,000 dividend from ForCo, a wholly-owned foreign corporation. ForCo's post-1986 undistributed earnings and profits are $16 million and it has paid $10 million of foreign income taxes attributable to these earnings. What is USCo's deemed paid foreign tax credit related to the dividened received (before consideration of any limitation)?

a. $10 million

b. $16 million

c. $ 187,500

d. $487,500

2. In a proportinate liquidating distribution, Barbara receives a distribution of $40,000 cash, accounts receivable (basis of $0 and fair market value of $20,000), and land (basis of $20,000 and fair market value of $30,000). In addition, the partnership repays all liabilities, of which Barbara's share was $40,000. Barbara's basis in the entity immediately before the distribution was $50,000. As a result of the distribution, what is Barbara's basis in the accounts receivable and land, and how much gain or loss does she recognize?

a. $0 basos om accpimts receovab;e' $0 basis in land; $30,000 gain.

b. $0 basis in accounts receivable; $10,000 basis in land; $0 gain or loss.

c. $0 basis in accounts receivable; $20,000 basis in land; $0 gain or loss.

d. $20,000 basis in accounts receivable; $30,000 basis in land; $40,000 gain.

e. $20,000 basis in accounts receivable; $30,000 basis in land; $80,000 gain.

3. Malin, a 51% owner of an S corporation, has a stock basis of zero at the beginning of the year. Malin's basis in a $30,000 loan made to the S corporation and evidenced by a corporate note has been reduced to zero by pass-through losses. During the year, her net share of corporate ordinary income is $12,000. At the end of the year, Malin receives a $14,000 distribution. Determine any taxable income from the distribution.

a. $2,000 capital gain

b. $2,000 ordinary income

c. $12,000 ordinary income

d. $14,000 ordinary income

Reference no: EM13622296

Questions Cloud

Sould 1000 be investigated review assignment 7nbsp and in : should 1000 be investigated? review assignment 7 and in 300-350 words answer the following questions what is the

Suppose that the distribution of keyboarding speeds for : suppose that the distribution of keyboarding speeds for students who have completed a two- week keyboarding course is

The boxes slide horizontally across a ramp of unknown : on a factory assembly line boxes of mass 20 kg slide from rest down a frictionless incline of length 10m angled 20

Determine the velocity v of each sphere as the rods pass : the two 1.5-kg spheres are released from rest and gently nudged outward from the position theta0 and then rotate in a

Usco a domestic corporation has worldwide taxable income of : 1. usco a domestic corporation has worldwide taxable income of 1500000 including a 300000 dividend from forco a

If you require the wavelength of electron-beam for an : a calculate the electrons de brogile wavelength when its kinetic energy is 25ev.b if you require the wavelength of

During the construction of a highway by-pass earthmoving : during the construction of a highway by-pass earthmoving equipment costing 40000 was purchased for use in transporting

An mp3 player is loaded with 60 musical selections 24 rock : an mp3 player is loaded with 60 musical selections 24 rock tunes 21 jazz tunes and 15 blues tunes. the player is set on

The child can push with a constant force of 320n use the : a childs toy consists of a toy car of mass 0.100kg which is able to roll without friction on the loop-the-loop track

User Account

All Pages