Reference no: EM132688075

Question 1: What are the Federal income tax consequences to of a $10,000 cash dividend for each share of stock?

A. Speculation Corp. B. Wise Corp. C. Mr. Glynn D. Ms. Carillo E. Ms. Schlinger

Question 2: What are the financial management consequences of paying the $10,000 per share?

Question 3: What are the Federal income tax consequences to A, B, C, D & E if B & C receive the $10,000 cash per share and D & E each receive an undivided half interest in one of the apartment buildings?

Question 4: Which apartment building would be better for minimizing Federal income taxes on the income from the apartments?

Question 5: What would be Ms. Carillo's and Ms. Schlinger's basis in the one-half interest in the apartment building?

Question 6: From a Federal income tax point of view, what type of property would the apartment building be to Ms. Carillo and Ms Schlinger?