Reference no: EM132645514
Problem - Dan Knight and Patricia Chen, who are good friends, form Crane Corporation. Dan transfers land (worth $200,000, basis of $60,000) for 50% of the stock in Crane. Patricia transfers machinery (worth $150,000, adjusted basis of $30,000) and provides services worth $50,000 for 50% of the stock.
a. Will the transfers qualify under § 351? Explain.
b. What are the tax consequences to Dan and Patricia?
c. What is Crane Corporation's basis in the land and the machinery?
d. Enter the results of this transaction to Patricia on her Form 1040 (use the most current form available). Assume Patricia is single, has no other income, and claims the standard deduction ($12,000 for 2018; $12,200 for 2019). Complete the Form 1040 to the taxable income line.
|
Find what is the present value of the future amounts
: What is the present value of the following future amounts? 105,500 SAR received from 10 years from now at 10%. / 15,500 SAR received from 5 years from now at 8%
|
|
Find the new balance at the end of december
: The finance charge rate was 1.6% per month of the average daily balance. Find the new balance at the end of December.
|
|
What gain will John recognize on the transfer
: John transfers property worth $350,000 (basis of $170,000) to Toucan for 1,000 more of its shares. What gain, if any, will John recognize on the transfer
|
|
What is the expected return and standard deviation
: What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds?
|
|
What are the tax consequences to Dan and Patricia
: Dan Knight and Patricia Chen, who are good friends, form Crane Corporation. What are the tax consequences to Dan and Patricia
|
|
Do think mark watney is a champion and why or why not
: Do you think Mark Watney is a champion? Why or why not? The movie "The Martian" can be viewed through the framework of project management.
|
|
What is the amount of total liabilities
: Its net working capital is $650. Its long-term debt is $4,000, What is the amount of total liabilities?
|
|
How objective conflict with one of maximizing shareholder
: Describe the financial crisis? How would this objective conflict with the one of maximizing shareholder value? Do you believe such an objective is feasible?
|
|
Prepare a letter to Troy and a memorandum for the tax files
: You represent Troy, who asks whether he must report gain on the transfer. Prepare a letter to Troy and a memorandum for the tax files
|