QUESTION 20 The Section 1231 Gain and Section 1231 Loss rules and the Section 1245 Depreciation Recapture and Section 1250 Depreciation Recapture rules apply, directly or indirectly, to Partnerships, S Corporations and Regular (C) Corporations. True O False
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Q: ples that are already part of be void max (). Your print on
A: The code of method is given as,
Q: erate operatio
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A:
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Q: Sales budget data for Paige Company are given in BE9.2. Management desires to have an ending…
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A: calculation of expected sales in 2021 are as follows
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- 33. A purchaser of a business will generally prefer which of the following? An asset purchase to receive new basis for depreciation A stock purchase because the seller will receive capital gains Utilizing a §338(g) election If the selling entity is an S Corporation making a joint §338(h)(10) election All of the above A,C,&D What form is required to report the allocation of the purchase price? ____________9 When making non-cash distributions where the fair market value of the property distirbuted exceeds its adjusted basis, corporations must: a. Defer the gain until such time as the recipient shareholder disposes of all stock in the corporation b. Disclose the adjusted basis info to the recipient shareholder so the shareholder may recognize the gain upon disposition. c. Recognize gain under IRC 311True or False: An S Corporation recognizes gain on the distribution of appreciated property to its shareholders which is then reported to its shareholders on Schedule K-1.
- Match the following. b. c. d. e. b. c. d. e. b. c. d. e. b. c. d. e. - a. - a. - a. - a. S corporation C corporation Limited partnership General partnership a. Contribution of appreciated property to the business entity by an owner is never subject to taxation. Realized gains on the contribution of appreciated property to the entity are not recognized by the contributor when an 80% control requirement is satisfied. Realized losses on the contribution of loss property to the entity are never recognized by the contributor. Realized losses on the contribution of loss property to the entity are recognized by the contributor unless an 80% control requirement is satisfied. b. C. d. e. Basis of ownership interest to the owner is dependent on whether gain or loss is recognized to the owner on the contribution of assets to the business entity.Section 291 depreciation recapture for corporations provides that what portion of the gain on depreciable real property will be recognized as ordinary income?Question (10) 1- Elimination of intra-entity profit or loss may be allocated between the parent and noncontrolling interest. True or False 2- Consolidating entries to eliminate intra-entity transfers of property need to be made only in the year of transfer. True or False 3- In consolidations, downstream sales (from parent to subsidiary) are eliminated, and the intra-entity gain needs to be allocated between the parent and subsidiary. True or False 4- Intra-entity transactions transferring assets subject to depreciation or amortization are handled in the same manner as land transactions each year. True or False 5- Reporting financial statements values reflecting the single entity perspective is the primary objective of consolidating entries. True or False
- Question 10 All of the following are characteristics of a corporation, except. has one or more owners, and called partners is considered a separate legal entity O A. В. C. It has an indefinite life D. the owners are not liable for corporation's debtsQ.Real estate ownership is often structured in a limited partnership or LLC legal form. The PRIMARY reason why these forms are preferred over a regular corporation is: a. Provides the participants easier way to borrow funds b. Allows owners the benefit of state laws versus federal laws c. To avoid double taxation d. Ability to limit liabilitye. How would your answers to items (b) through (d) change if the Legal Entity is a "voting interest entity?" Consolidated net income $ Consolidated net income attributable to noncontrolling interest $ Consolidated net income attributable to controlling interest $ 0 0 0
- In a merger of consolidation, or transfer to a controlled corporation, loss is deductible. Group of answer choices True FalseX and Y corporations enter in legal consolidation process. The net assets of x at the FMV 120000 and the net assets of Y at the FMV 80000. Y will be considered as ... a. Combinee b. Lessor c. Lessee d. CombinorQuestion 16 All of the following are characteristics of a corporation, except: O A. O B. OC. It has an indefinite life has one or more owners, and called partners is considered a separate legal entity O D. the owners are not liable for corporation's debts
