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- (3) XYZ Corporation redeems a portion of its stock owned by one of its shareholders, Black. The corporation redeems Black's shares by distributing to him a parcel of real property with a FMV of $420,000 and an adjusted basis in the hands of XYZ Corporation of $245,000. What is the amount of gain, if any; XYZ Corporation will recognize that under the following circumstances? (a) The redemption fails to satisfy any of the tests of §302(b) and therefore fails to fit within the provisions of §302(a) and is required to be tested under §301? (b) The redemption satisfies the test set forth in §302(b)(2) and therefore does fit within the provisions of §302(a).Check my answer. Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to Swift Corporation for 90% of the stock. The property is subject to a liability of $60,000, which Swift assumes. What is the basis of the Swift stock to Adam? Section 357 provides when the acquiring corporation a liability is a section 351 transaction, the liability is not treated as a boot received for gain purposes, but is used in determining the basis of the stock received. The basis of the property transferred is $50,000, Liability assumed is $60,000. The basis of the stock received is $0.0 What is the basis of the property to Swift Corporation? The basis of the property received by the corporation is greater than the adjusted basis or the debt assumed. Swifts basis in the property is $60,000Howard Corporation liquidates and distributes $20,000 cash and land with a fair market value of $80,000 to its sole shareholder, Ryan. Ryan also assumes a $12,000 mortgage that is a attached to the land. Ryan’s basis in the stock is $70,000. Compute the amount of gain or loss that Ryan will recognize on the liquidation.
- 2. Santiago transfers real estate with an adjusted basis of $400,000 and fair market value of $550,000 to the newly formed Star Corporation in exchange for 100% of its stock. The corporation assumes the liability on the transferred real estate in the amount of $425,000. What is Santiago's basis for his stock?Coin Corporation is liquidating and will distribute $10,000 in money, other property having a $200,000 FMV, and a $60,000 mortgage on the property which Jim will assume. Jim's basis in his Coin stock is $30,000. Upon liquidation, Jim must recognize a gain of O $60,000 $120,000 $180,000 $90,000Acme Corporation is liquidated with Joe, sole shareholder, receiving property having an adjusted basis of $70,000 and an FMV of $100,000. Joe's basis in the Acme stock surrendered is $60,000. Describe the tax consequences to Joe and Acme as a result of the liquidation. Please explain step by step so I can understand the concepts, not just an answer.
- Blue Corp. purchased 100% of the stock of Magenta Corp. in 1984 for $300,000. Early this year, Magenta was liquidated. Blue Corp. received all of Magenta’s assets, which had a basis to Magenta Corp. of $420,000 and a FMV of $440,000. Assume the requirements of §332 were satisfied. What about of gain will Blue Corp. recognize any gain as a result of the liquidation?(CO C) Suzanne transfers a building with an adjusted basis of $60,000 and a fair market value of $120,000 to ABC Company in return for 100% of its stock. The building is subject to a $90,000 mortgage, which ABC Company assumes. Please calculate the amount of any gain that Suzanne will need to report. Please also calculate Suzanne's basis in the stockPlainwell Ice Cream Corporation distributed property with a $300,000 fair market value and $20,000 adjusted basis to Luis, one of its shareholders. The property was subject to a $150,000 mortgage, which Luis assumed. Plainwell Ice Cream Corporation E & P is $200,000. How much of the property distribution is treated as dividend income, if any? How much gain, if any, does Plainwell Ice Cream Corporation recognize?
- Van Industries and Frat Corporation trade land in 2021. Van has an adjusted basis of $740,000 in land, whereas Frat's land has a fair market value of $700,000 and an adjusted basis of $660,000. a. What are Van's realised and acknowledged benefits? b. What are the realised and recognised profits to Vans if Frat additionally pays $80,000 in cash to Van? What exactly is Van's stake in the newly purchased land? Could you please show me the work? I'm stumped. Thanks!c c. What are Vee's realised and recognised gains if Form it assumes a $100,000 recourse loan on his land? What is Vee's stake in the newly purchased property?Arnold and Bobby form Happy Corporation. Arnold transfers equipment that Arnold has an adjusted basis of $30,000 but has a fair market value of $60,000. Arnold receives 50% of the stock. Bobby transfers equipment with an adjusted basis of $70,000 and a faiir market value of $60,000 for the remaining 50% of the stock of Happy Corporation. Does Arnold, Bobbly or Happy have to report any gain or loss on this transaction? Why or why not?Goose Corporation has a basis of $7,645,000 in the stock of Swift Corporation, a wholly owned subsidiary acquired 30 years ago. Goose liquidates Swift Corporation and receives assets that are worth $6,116,000 and have a basis to Swift of $ 5,351,500. If an amount is zero or there is no gain or loss, enter "0". a. Determine Goose Corporation's recognized gain or loss on the liquidation. Goose recognizes of: . As a result, Goose's basis in the Swift stock is now s b. Determine Goose Corporation's basis in the assets received in liquidation. Goose Corporation has a basis of $ in the assets received in liquidation.