What are the tax consequences for both

Assignment Help Accounting Basics
Reference no: EM132662524

Problem - Dove Corporation (E & P of $800,000) has 1,000 shares of stock outstanding. The shares are owned as follows: Julia, 600 shares; Maxine (Julia's sister), 300 shares; and Janine ( Julia's daughter), 100 shares. Dove Corporation owns land (basis of $300,000, fair market value of $260,000) that it purchased as an investment seven years ago. Dove distributes the land to Julia in exchange for all of her shares in the corporation. Julia had a basis of $275,000 in the shares. What are the tax consequences for both Dove Corporation and Julia if the distribution is:

a. A qualifying stock redemption?

b. A liquidating distribution?

Reference no: EM132662524

Questions Cloud

Write definition and overview of selected law or regulation : For this assignment, you will write an essay addressing the applications and implications of a law or regulation discussed in this course to the conduct.
Moving average to forecast number of mergers : Calculate a 5-year moving average to forecast the number of mergers for 2012. Should a firm attempt to have fewer or more suppliers?
Why is growth through merger and acquisition : Why is growth through merger and acquisition and vertical integration such an important strategy in healthcare now?
Focused factory of manufacturing strategy : How a bank can use the concept of Focused factory of manufacturing strategy? What would be the benefits of doing so?
What are the tax consequences for both : What are the tax consequences for both Dove Corporation and Julia if the distribution is a qualifying stock redemption
Develop the skills and charisma to be effective : Identify what you believe are the 5 (five) most important leadership responsibilities and how today's business leader
Find how city racquetball club cash management would differ : Find how City Racquetball Club's cash management would differ from the present if the new membership plan and fee structure were adopted.
Implement integrated strategic change : Outline what Amis, Slack, and Hinings' (2004) paper tells us about how to implement integrated strategic change.
What are the tax consequences to Oriole on the distribution : If the land is, instead, subject to a liability of $400,000, what are the tax consequences to Oriole on the distribution

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare firms profit and loss appropriation

Imagine that you are an active partner in a firm and there is no mention about your salary in a partnership deed. How much is your salary.?

  On december 1 miser corporation exchanged 2000 shares of

on december 1 miser corporation exchanged 2000 shares of its 25 par value common stock held in treasury for a parcel of

  Why you believe robust internal controls to be important

Draft a letter for Tim Blake to send to WM's investors to include the following: Why you believe robust internal controls to be important?

  Determine rebas federal income tax refund

Determine Reba's federal income tax refund or taxes payable for current year?Reba Dixon is a fifth-grade school teacher who earned a salary of $38,400 in 2018

  Assume the stock has neither par nor stated value

Assume the stock has neither par nor stated value. Prepare journal entries to record this event, Assume the stock has an $7.0 stated value. Prepare journal entries to record this event.

  Define straight-line amortization for bond premium

Sehr Company issued $500,000, 6%, 30-year bonds on January 1, 2017, at 103. Interest is payable annually on January 1.

  Determine the amount and character of the recognized gain

On May 2, 1987, Hannah acquired residental real estate for $450,000. Of the cost, $100,000 was allocated to the land and $350,000 to the building. On August 20, 2015, the building, which then had an adjusted basis of $0, was sold for $545,000 a..

  Explain how using a predetermined overhead rate

Explain how using a predetermined overhead rate can affect profits and losses

  You want to have 2 million in real dollars in an account

you want to have 2 million in real dollars in an account when you retire in 40 years. the nominal return on your

  In january 2013 mitzu co pays 2700000 for a tract of land

in january 2013 mitzu co. pays 2700000 for a tract of land with two buildings on it. it plans to demolish building 1

  Fair value and equity method compared

Prepare the journal entries for Gregory Inc. for 2010 and 2011, assuming that Gregory can exercise significant influence over Henderson.

  Determine income statement and retained earnings statement

Prepare a income statement, a retained earnings statement, and a classified balanced sheet as of december 31, 2022. Then compute the current ratio

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!

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