User Account

All Pages

What is the effect on Pink Corporation

Assignment Help Accounting Basics
Reference no: EM132646826

Problem - Last year Pink Corporation acquired land and securities in a § 351 tax-free exchange. On the date of the transfer, the land had a basis of $720,000 and a fair market value of $1,000,000 and the securities had a basis of $110,000 and a fair market value of $250,000. Pink Corporation has two shareholders, Maria and Paul, unrelated individuals. Maria owns 85% of the stock in Pink Corporation, and Paul owns 15%. The corporation adopts a plan of liquidation in the current year. On this date, the value of the land has decreased to $500,000. What is the effect of each of the following on Pink Corporation? Which option should be selected?

a. Distribute all of the land to Maria.

b. Distribute all of the land to Paul.

c. Distribute 85% of the land to Maria and 15% to Paul.

d. Distribute 50% of the land to Maria and 50% to Paul.

e. Sell the land and distribute the proceeds of $500,000 proportionately to Maria and to Paul.

Reference no: EM132646826

Questions Cloud

Describe each key competitor marketing strategy : Perform a Market/Submarket Analysis - current and high potential. Perform a Customer Analysis - current and high potential. Provide a Comprehensive Strategy
What are tax consequences of the liquidating distribution : Scarlet Corporation distributes to Jake land (basis of $425,000, fair market value of $390,000) What are tax consequences of the liquidating distribution
Bound to encounter some people issues : "All teams are bound to encounter some "people issues" from time to time. If you were the Team Leader:
Perform a competitor analysis : Perform a Competitor Analysis. Identify and analyze the three most important direct competitors. Identify other current and potential direct competitors
What is the effect on Pink Corporation : On this date, the value of the land has decreased to $500,000. What is the effect of each of the following on Pink Corporation? Which option should be selected
Perform an external and internal environmental analysis : Perform an External and Internal Environmental Analysis. Internal environment yields strengths and weaknesses - focus on things that contribute most to market
What is the probability of a positive net present value : Based on history, there is a .60 probability of a positive net present value when competitors do not respond to our introduction of a new product.
What could do in a short-term period of time to remedy : What could do in a short-term period of time to remedy the situation? What could you do in a long-term period of time? Develop a plan for each.
The historical study of psychology : Imagine that you have been asked to give a guest lecture to first year undergraduate students on the topic of the historical study of psychology.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the unit production costs for material

Beginning inventory units were 100 percent complete as to material and 80 percent complete as to labor. Determine the unit production costs for material

  What amount of gross income should pierce report

Lease cancellation payment from a 5-year lease tenant: $100,000. What amount of gross income should Pierce report on its 2009 tax return

  Jana kingston corporation enters into a lease

Jana Kingston Corporation enters into a lease on January 1, 2011, that does not transfer ownership or contain a bargain-purchase option.

  How should magrath account for and report the accounts

What are the two basic approaches to estimating uncollectible accounts under the allowance method? What is the rationale for each approach?

  How will the gain be allocated to the partners

The PG Partnership was formed by Peter and George. Peter contributed $45,000 cash for a 50% partnership interest. George contributed property with a tax basis.

  What amount will perrys pretax earnings

The normal cash price for this type of equipment is $140,000 while the cost to Perry was $109,000. For the year ended December 31, 2013, by what amount will Perrys pretax earnings increase from this lease?

  How much must evie include in her assessable income

She also has interest of $25,000 from a loan made to a friend to renovate the friend's house. How much must Evie include in her assessable income

  Discuss production and sales estimates for june

Alaska Snow Blowers Co. released the following information

  Prepare the journal entry to record interest expense

Prepare the journal entry to record interest expense and bond premium amortization on December 31, 2014, assuming no previous accrual of interest

  Compute topiary merchandise inventory turnover ratio

The beginning merchandise inventory was $195,000 and the ending merchandise inventory is $205,000. Topiary's merchandise inventory turnover ratio is

  Litke corporation a company that produces and sells a

litke corporation a company that produces and sells a single product has provided its contribution format income

  Kevin company prepare the journal entries to record all of

kevin company prepare the journal entries to record all of the transactions listed below.kevin company hjad the

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