Solution-Determine the basis in a and b shares

Determine the basis in a and b shares

Reference no: EM13539888

The Jane Corporation, an S corporation, makes several property distributions to its two equal shareholders, A and B, during the year. The distributions are as follows:

	A	B
Cash	$5,000	$5,000
Land (Basis = $5,000)	$10,000 (FMV)
Equipment (Basis = $15,000)		$10,000 (FMV)

At the beginning of the year, the corporation's accumulated adjustments account is $35,000; A's basis in his shares is $24,000; and B's basis is $32,000. The corporation reports net income of $6,000 for the year, excluding any effect of the distributions. Determine the basis in A and B's shares and the balance in the corporation's AAA at the end of the year.

Reference no: EM13539888

Questions Cloud

Observations corresponds to which frequency of light : If I have light of three different frequencies, 9.2x10^14 Hz; 6.7x10^14 Hz; 4.7x10^14 Hz that is shined on a metal surface with the observations for each frequency labled A,B, and C as follows:

Direct measurement of the spread of the photon energy : In special conditions, it is possible to measure the energy of a gamma-ray photon to 1 part in 10^15. For a photon energy of of 50 keV, estimate the maximum lifetime that could be determined by a direct measurement of the spread of the photon energy.

Electron is confined to region of space of size of atom : An electron is confined to a region of space of the size of an atom (0.1 nm). What is the uncertainty in the momentum of the electron? What is the kinetic energy of an electron with a momentum equal to deltaP ?

Statements about electromagnetic waves : Gamma rays can be produced through electrons oscillating in wires of electric circuits. The Earth's atmosphere is quite transparent to infrared radiation. A vertical automobile antenna is sensitive to electric fields polarized horizontally. Visible l..

Determine the basis in a and b shares : The corporation reports net income of $6,000 for the year, excluding any effect of the distributions. Determine the basis in A and B's shares and the balance in the corporation's AAA at the end of the year.

What is the magnitude of the astronauts linear speed : An astronaut is being tested in a centrifuge. The centrifuge has a radius of 7 m and, in starting, rotates according to ? = 0.30t2, When t = 5.0 s, what is the magnitude of the astronaut's linear speed

What is underwater angle of refraction for red component : The index of refraction for red light in water is 1.331 and that for blue light is 1.340. A ray of white light enters the water at an angle of incidence of 80.4°. What is the underwater angle of refraction for the red component of the light?

Find the impulse delivered to the ball by the bat : A baseball (mass = 140 g) is pitched so that it crosses home plate with a speed of 92.0 mph at an angle of 18.4degree below the horizontal. find the impulse delivered to the ball by the bat

Agriculture and forestry for food and fuels : Agriculture and forestry for food and fuels, space heating of large and small buildings, water heating, and heating for drying and many other processes are current and potential applications of solar energy.

User Account

All Pages

Determine the basis in a and b shares

Reference no: EM13539888

Reference no: EM13539888

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Prepare the companys direct labor budget

Q1 which of the following is not a relevant value in this

Cash flows used for investing activities section in 2012

Ethical decision making

Question 1alvarez company is considering the

Discuss the current effects of ifrs

Questionon december 31 2012 dow steel corporation had

1nbsp as the lead service for the joint armored wheeled

Prepare any essential journal entry or entries

Find the balanced scorecard

Compute the amount of accumulated depreciation

Eveluate the margin of safety - percentage of sales

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT