Reference no: EM133005085

Question - Part 1 - Unrelated individuals E and F each own 200 of the 400 shares of outstanding stock of P Corporation and 1,000 of the 2,000 shares of outstanding stock of R Corporation. Each has a basis of $10 a share in the P Corporation stock. E and F each sell 100 shares of their P Corporation stock to R Corporation for $5,000 each. Assume P and R both have e&p of $2000. What are the income and basis consequences to E, F, P and R

Part 2 - Individuals I and J each own 500 of the 1,000 shares of outstanding stock of U Corporation, which has no other outstanding stock. Their basis in the stock is $1,000 each. U Corporation owns 100 percent of the outstanding stock of V Corporation. I and J each sell 200 shares of their U Corporation stock to V Corporation for $10,000 each. Assume U and V each have $7500 in e&p. What are the income and basis consequences to I, J, V, and U?

Part 3 - Corporation S and Corporation T each have outstanding 100 shares of common stock. G, an individual, owns one-half the stock of each corporation, H owns one-half the stock of Corporation S, and I owns one-half the stock of Corporation T. G, H, and I are unrelated. G sells 30 shares of the stock of Corporation S to Corporation T for $50,000, such stock having an adjusted basis of $10,000 to him. Assume both S and T have $100000 of e&p. What are the income and basis consequences to S, T, and G?