Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1) To improve liquidity, shareholders of Sunstar Corporation make capital contribution of $200,000 in cash. To help the building of a manufacturing plant, City of Wichita donates land (worth $800,000) to Sunstar Corporation. Thus of these transactions, Sunstar has:

a. No income and a basis in the land of zero.
b. No income and a basis in the land of $800,000.
c. Income of $1 million and a basis in the land of zero.
d. Income of $800,000 and a basis in the land of $800,000.
e. None of the above.

2) ABC Corporation is liquidated and its assets are circulated to its 10 equal and unrelated individual shareholders. The assets circulated are as follows:

One of the tax consequences of liquidating distribution is:

a. The shareholders will have a basis of $800,000 in the property they receive.
b. The shareholders will have a basis of $850,000 in the property they receive.
c. ABC Corporation will recognize no loss on the securities, but must recognize a gain of $100,000 on the land.
d. No gain or loss is recognized by ABC Corporation.
e. None of the above.

                                    Basis to ABC Corporation     Value When Distributed
Marketable securities          $300,000                                $250,000
Land                                     500,000                                 600,000

3) Sam and his three sisters are equal partners in the Heron Partnership. In 2007, Sam sells property (basis of $300,000) to Heron for its fair market value of $280,000. In 2009, Heron sells property to a third party for $290,000. Which of the following statements accurately describes these transactions?

a. Sam has a recognized loss of $20,000, and Heron has no recognized gain or loss.
b. Sam has no recognized loss, and Heron has no recognized gain or loss.
c. Sam has no recognized loss, and Heron has a recognized gain of $10,000.
d. Sam has a recognized loss of $20,000, and Heron has a recognized gain of $10,000.
e. None of the above.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M99831

Have any Question? 


Related Questions in Accounting Basics

International accountingpart 1the weeks discussion covered

INTERNATIONAL ACCOUNTING PART 1 The week's discussion covered the following International Accounting Standards (IAS): #21 The Effects of Changes in Foreign Exchange Rates #27 Consolidated and Separate Financial Statement ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference) "earnings-based valuation" please respond to the following: • Create an argument supporting that ...

Accountingbullimagine you are a consultant hired to convert

Accounting • Imagine you are a consultant hired to convert a manual accounting system to an automated system. • Suggest the key advantages and disadvantages of automating a manual accounting system. • Identify the most i ...

Assessment one - business research report proposal initial

Assessment One - Business Research Report Proposal: Initial Research Proposal The initial research proposal will consist of the following SIX (6) items: 1. Identify a business research topic 2. Define the research questi ...

Accounting questions1 if cash is 2345 in 20x2 and 3671 in

Accounting Questions 1. If Cash is $2,345 in 20X2 and $3,671 in 20X1, what is the percentage of increase or (decrease) from 20X1 to 20X2? A. 56.55%******* B. (56.55%) C. 36.12% D. (36.12%) 2. Gross profit by department a ...

Aountingfalcons incorporatedassetsnbsp20132012cash and

Accounting FALCONS INCORPORATED Assets   2013 2012 Cash and Marketable Securities 10 80 Mc.. Receivable 375 315 Inventories 615 415 Total Current Ass. 1,000 810 Net plant and equipment 1,000 870 TOTAL ASSETS 2,000 1,680 ...

I on 1115 big co acquired 70 of little co for 350000 euros

I) On 1/1/15 Big Co. acquired 70% of Little Co. for 350,000 Euros (€). The fair value of the non-controlling interest on that date was €150,000. Little's book value on that date was €500,000, and all assets and liabiliti ...

Question 1 tonys textile company sells shirts for men and

Question 1: Tony's Textile Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows: Men's Boy's Selling Price $28.80 Selling Price $24.00 Variable Cost $20.40 Va ...

Assignment- fraud in the accounting information systemfor

Assignment- Fraud in the Accounting Information System For this assignment, research the Internet or Strayer databases to locate a firm that was involved in a fraud and / or embezzlement case. Explain how the firm's acco ...

Assignment1 government entity ccr 2 government entity power

Assignment 1.) Government Entity CCR 2.) Government Entity Power Point presentation Refer to www.agacgfm.org for information on the CCR. A CCR is a 4 page document summarizing information and creating a presentation for ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen