What is robert realized and recognized gain

Assignment Help Financial Accounting

Reference no: EM13134850

Roberts Inc. transferred all its assets to Acquisition Inc. for $300,000 worth of its voting preferred and $50,000 in cash to the sole shareholder (Ann) of Roberts Inc. Ann’s basis in her shares was $200,000. The assets transferred had a value of $370,000, a basis of $250,000 and were subject to a liability of $20,000. Roberts Inc. had an operating loss of $1 million. The long term tax exempt rate is 4%. Roberts liquidated and distributed the stock and cash to its shareholders.

a. Does the transaction qualify as a type C reorganization?

b. What is Robert’s realized and recognized gain?

c. What is Acquisition Inc.’s basis in the assets? What attributes carry over?

d. What is Ann’s realized and recognized gain and the basis in the boot and shares received?

e. Ann owns 30% in Acquisition Inc. is there a limitation on any attributes that carryover and by how much?

Reference no: EM13134850

Questions Cloud

What is the balance of the fund at the end : The fund pays interest at 5% compounded annually. What is the balance of the fund at the end of 2010 (after the 2010 deposit)? Show your work.

Calculate the mass of silver chloride in grams required : Silver chloride often used in silver plating contains 75.27% Ag. Calculate the mass of silver chloride in grams required to make 4.0 g of silver plating.

Disclosure principle by accounting profession : The full disclosure principle, as adopted by the accounting profession, is best described by which of the following?

Short essay from best e song, book or movie : grad school application short essay. "Choose one song, book or movie that best explains who you are and describe in detail how it captures you."

What is robert realized and recognized gain : What is Robert’s realized and recognized gain? What is Acquisition Inc.’s basis in the assets? What attributes carry over? What is Ann’s realized and recognized gain and the basis in the boot and shares received?

What is the final temperature : A 45.5 g sample of copper at 99.8 degrees celsius is dropped into a beaker containing 152 g of water at 18.5 degrees celsius. What is the final temperature when thermal equilibrium is reached?

What type of variable for patient-s heart attack as mild : Patient's heart attack as mild, moderate or severe. The nurse's classification of the severity of the patient's heart attack is an example of what type of variable?

Determine the accounting principles of the foreign : Access the financial statements from the most recent annual report of a foreign company and a domestic company with which you are familiar to complete this assignment.

What is the average atom weight of the element : A hypothetical element Z has two stable isotopes: Z-46 = 46.046 u 64.08% Z-51 = 50.826 u 35.92% What is the average atom weight of the element?

User Account

All Pages