User Account

All Pages

What is the tax consequence to Sleeping Corporation

Assignment Help Accounting Basics
Reference no: EM132864093

Problem - Sleeping Corporation makes a liquidating distribution to its shareholder Ted. The liquidating distribution is land that it acquired in a §351 transfer two years ago. At the time of the contribution the land had basis of $100,000 and FMV of $500,000. At the time of distribution the FMV of the land is $60,000. Ted owns 20% of the company, Stella owns 35%, Marcus owns $25%, and Brady owns 20%. Stella is Ted's grandmother. Marcus and Brady are Ted's best friends from childhood.

Required -

a) What is the tax consequence to Sleeping Corporation on the distribution?

b) What is the tax consequence to Ted on the distribution if his stock basis is $300,000?

Reference no: EM132864093

Questions Cloud

Would prefer to keep accounting records on a cash basis : Would prefer to keep accounting records on a cash basis or an accrual basis? Reflect on the differences between cash basis and accrual basis accounting
What are the benefits of choosing the new process : The new process will require $12,000,000 for new equipment and installation and $3,000,000 for training. What are the benefits of choosing the new process
Synthesize inconsistencies between firm strategy and goals : Analyze and synthesize inconsistencies between the firm's strategy and its goals.
How much are equivalent units for materials : The beginning and ending inventory is fully complet3 as to materials costs. How much are equivalent units for materials if the FIFO method is used
What is the tax consequence to Sleeping Corporation : The liquidating distribution is land that it acquired in a §351 transfer two years ago. What is the tax consequence to Sleeping Corporation
Major current federal immigration policy issues : What are the major current federal immigration policy issues? How do you feel about related policies?
Discussing the importance of a termination agreement : Discussing the Importance of a Termination Agreement in Relation to Business Law in the UAE - The Abstract consists of the project title and about half a page
How many ice-cream cones would Emerald Street have to sell : If ABC only sells single scoop cones, and charges $3.50 per cone, how many ice-cream cones Emerald Street have to sell to make a profit of $3,000 per month
Business trends influence personal selling : How does keeping up with the business trends influence personal selling?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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