What are the tax consequences of the distributions to ivory

Assignment Help Financial Accounting

Reference no: EM131198213

The stock in Ivory Corporation is owned by Gold Corporation (80%) and Imelda (20%). Gold Corporation purchased its shares in Ivory nine years ago at a cost of $650,000, and Imelda purchased her shares in Ivory four years ago at a cost of $175,000.

Ivory Corporation has the following assets that are distributed in complete liquidation:

	Adjusted Basis	Fair Market Value
Cash	$600,000	$600,000
Inventory	80,000	200,000
Equipment	350,000	200,000

a. Assume that Ivory Corporation distributes the cash and inventory to Gold Corporation and the equipment to Imelda. What are the tax consequences of the distributions to Ivory Corporation, to Gold Corporation, and to Imelda?

b. Assume that Ivory Corporation distributes the cash and equipment to Gold Corporation and the inventory to Imelda. What are the tax consequences of the distributions to Ivory Corporation, to Gold Corporation, and to Imelda?

Reference no: EM131198213

Questions Cloud

Write the voltage equations in the arbitrary reference frame : The phases are not coupled. Write the voltage equations in the arbitrary reference frame and draw the equivalent circuit.

At what marginal tax rate would bond investor be indifferent : The municipal bond is yielding 1.15% and the corporate bond is yielding 2.10%. - At what marginal tax rate would the bond investor be indifferent between the two bonds?

What you learned about company as you work through activity : Upon completion of the financials, write a paper detailing the process and what you learned about the company as you work through this activity.

Prepare a combined schedule of cost : BBAC501 Group Assignment. Prepare a combined schedule of cost of good manufactured and cost of sold statement for the month of July 2016. Show computations pertaining to the missing values for raw materials and WIP control accounts

What are the tax consequences of the distributions to ivory : Assume that Ivory Corporation distributes cash and inventory to Gold Corporation and the equipment to Imelda. -What are the tax consequences of the distributions to Ivory Corporation, to Gold Corporation, and to Imelda?-

Compute the current ratio and return on equity : Compute each of the following ratios for 2014 and 2015 and indicate whether each ratio was getting "better" or "worse" from 2014 to 2015 and whether the 2015 ratio was "good" or "bad" compared to the Industry Avg.

Explain how pattern recognition of patient symptoms : After completing this week's Practicum Experience, reflect on pattern recognition in diagnoses. Explain how pattern recognition of patient symptoms might help lead to a diagnosis. If you have not yet been placed at a practicum site, please contact..

Describe a nursing theory to guide your practice : Develop goals and objectives for your Practicum Experience in this course. When developing your goals and objectives, be sure to keep the seven domains of practice in mind.

Determining the demands of the public : Do you believe that there is an ethical or moral obligation to meet the demands of the public where consumables are concerned? Please provide an examples to support your thoughts.

User Account

All Pages