What is the amount and character of parents loss

Reference no: EM13824920

Tax planning research

Parent corporation owned 85% of the common stock and 100% of the preferred stock in subsidiary A. Parent's basis in the common stock is $400,000 and its basis in the preferred stock is $185,000. Parent's liquidation preference in the preferred stock is $200,000. On January 8 of this year, subsidiary A adopted a plan of liquidation. Within a week, it paid all its debts and distributed $140,00 to Parent in partial satisfaction of the liquidation preference. No distribution will be made on the common stock. What is the amount and character of Parent's loss?

Reference no: EM13824920

Questions Cloud

How shareholders can obtain information from company again : How might disgruntled shareholders gather information about a company, and seek answers from the company, against the company's will?

Calculate cost of goods sold on an average-cost basis : Assuming a perpetual inventory system is used, use the following information to calculate cost of goods sold on an average-cost basis

Situation with a single person company : A company can normally either use the replaceable rules and/or construct a constitution. However, what is the situation with a single person company?

Prepare bank reconciliation for rawlins company : Prepare bank reconciliation for Rawlins Company as of April 30. State the amount of cash that would appear on the balance sheet as of April 30

What is the amount and character of parents loss : Parent corporation owned 85% of the common stock and 100% of the preferred stock in subsidiary A. What is the amount and character of Parent's loss?

Evaluate the organizations purpose and goals : Evaluate the organization's purpose and goals is the business non-profit or does it sell widgets. It is recommended that you create a list of what the company does.

Right of director of company to issue debentures to lenders : Gerry, a director of a proprietary company has authorized the issue of $300,000 worth of debentures to 5 different lenders. Is he permitted to do this? Explain.

Variety of interest groups : Directors need to consider a variety of interest groups who are affected by their decisions, including some outsiders to the company. Which outsiders may have rights against a company?

Prepare journal entries for the given transactions : Jasmine Company has established a petty cash fund for small expenditures. Prepare journal entries for the following transactions

User Account

All Pages