User Account

All Pages

What are the tax consequences to Allie

Assignment Help Accounting Basics
Reference no: EM132661812

Problem - Allie forms Broadbill Corporation by transferring land (basis of $125,000, fair market value of $775,000), which is subject to a mortgage of $375,000. One month prior to incorporating Broadbill, Allie borrows $100,000 for personal reasons and gives the lender a second mortgage on the land. Broadbill Corporation issues stock worth $300,000 to Allie and assumes the mortgages on the land.

Required -

a. What are the tax consequences to Allie and to Broadbill Corporation?

b. How would the tax consequences to Allie differ if she had not borrowed the $100,000?

Reference no: EM132661812

Questions Cloud

What is the estimated value per share of the stock : The dividend is expected to grow at a constant rate of 7% per year. The required rate of return on the stock is 11.5%.
Write analysis connecting the three theories of morality : Explain how the theories align or do not align with your cultural identity. Include how cultural identity impacts social responsibility.
SHR043-6 Integrated Management Project Assignment : SHR043-6 Integrated Management Project Assignment Help and Solution, Majan University College - Assessment Writing Service
What is the cost of the bags in us dollars : What is the cost of the bags in US dollars, if purchased at today's spot rate ?
What are the tax consequences to Allie : Broadbill Corporation issues stock worth $300,000 to Allie and assumes the mortgages on the land. What are the tax consequences to Allie
What dream scape is like : What your dream scape is like, maybe some dreams you have had or insight into past dreams since the discussion. Also how this information can be useful to you.
What gain is realized on the transaction : Rhonda owns 50% of the stock of Peach Corporation. What gain is realized on the transaction? How much of the gain will be recognized
Describe the social problem or policy would like to change : Is continued policy practice/advocacy needed to make a long-term impact? Why or why not? Describe the social problem or policy you would like to change
What is Robin Corporation basis in the property : Ann transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation. What is Robin Corporation basis in the property

Reviews

Write a Review

Accounting Basics Questions & Answers

  Dynamic leaders inc reported the following results for the

dynamic leaders inc. reported the following results for the yearending july 31 2008. retained earnings august

  How do calculate notes payable and investments

how do I calculate notes payable and investments

  Prepare a balance sheet for bugant

Prepare a balance sheet for Bugant, Inc. at December 31, 2015, and an income statement for the year ending December 31, 2015. Assume semiannual compounding of the bond interest.

  Where can authoritative igaap

Where can authoritative iGAAP are found related to dilutive securities, stock-based compensation, and earnings per share?

  Select false statement about board of directors

Select which of these is NOT an example of a financial expert.

  Importance of cash flow statement

This question relates to Accounting Basics and it's discussed about the importance of cash flow statement in addition to balance sheet and income statements. Apart from balance sheet and incomes statement, a cash flow statement is also used for ar..

  What was total shareholders equity at the end

Ellsworth Corporation was organized on January 1, 2018. What was total shareholders' equity at the end of 2018

  How much is the depreciation expense

Cambridge has a December 31 fiscal year end. Using the double-declining balance method, how much is the 2019 depreciation expense

  Which of the following is false regarding the issue of

which of the following is false regarding the issue of stock versus the issue of bonds to raise capital?the issuance of

  What is dollar general''s free cash flow

Because GAAP does not define ratio metrics,Using the formula in the Course Packet, what is Dollar General's free cash flow for the fiscal year ending 2/1/2019?

  A 30 kw star-connected synchronous motor is supplied from a

a 30 kw star-connected synchronous motor is supplied from a 415 volt 50 hz source. when fully loaded and running at

  The issues and conclusions for parkers revenue recognition

Discuss the issues and conclusions for Parker's revenue recognition for this contract under the existing GAAP guidance

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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