What are the tax consequences of the incorporation

Assignment Help Accounting Basics
Reference no: EM132631046

Problem - Kesha, a sole proprietor, is engaged in a cash basis service business. In the current year, she incorporates the business to form Kiwi Corporation. She transfers assets with a basis of $500,000 (fair market value of $1,200,000), a bank loan of $450,000 (which Kiwi assumes), and $80,000 in trade payables in return for all of Kiwi's stock. What are the tax consequences of the incorporation of the business?

Reference no: EM132631046

Questions Cloud

Calculate the debt to assets ratio for each year : Calculate the debt to assets ratio for each year. Calculate the current ratio for each year. Calculate earnings per share for each year.
What is Osprey Corporation basis in property transferred : What is Osprey Corporation's basis in the property transferred by Alice and Jane? How does Osprey treat the value of the services that Jane renders
Establishing workplace conditions in current desired job : What role Congress has played in establishing workplace conditions in your current desired job...
Summarize a news story found on kaiser health news : Prepare an 800-1000 word research brief that (1) summarizes a news story found on Kaiser Health News within the past 30 days, then (2) discusses.
What are the tax consequences of the incorporation : Kesha, a sole proprietor, is engaged in a cash basis service business. What are the tax consequences of the incorporation of the business
Successful in emergency management system : What components do you think are the most successful in an emergency management system?
Discuss sustainability of the interventions : Describe financial/legal/ethical implications for the population related to the problem. Describe 2-3 interventions that can be used to improve the problem.
Prepare the journal entries investor company should record : March 1, 2019 does qualify as an observable price change in orderly transaction. Prepare the journal entries the investor company should record on March 1, 2019
Significance and application in criminal justice : Explain how a criminal justice agency can ensure that it hires moral individuals. Explain how an organization can create an expectation for moral conduct;

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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