Reference no: EM13158665
Purple Corporation has accumulated E&P of $65,000 at the beginning of the year. Its current-year taxable income is $320,000. On December 31, Purple distributed business property (worth $140,000, adjusted basis of $290,000) to Peter, its sole shareholder. Peter assumes an $80,000 liability on the property. Included in the determination of Purple's current taxable income is $16,000 of income recognized from an installment sale in a previous year. In addition, the corporation incurred a Federal income tax liability of $112,000, paid life insurance premiums of $3,500, and received term life insurance proceeds of $55,000 on the death of an officer.
a. What is Peter's taxable income?
b. What is the E&P of Purple Corporation after the property distribution?
c. What is Peter's tax basis in the property received?
d. How would your answer to (a) and (b) change if Purple had sold the property at its fair market value, used $80,000 of the proceeds to pay off the liability, and then distributed the remaining cash and any tax savings to Peter?
|
What is the selection coefficient
: In Rumbunnies, eggs and sperm carrying the Kef gene have a fitness that is only 75% that of the wild-type allele. Assume the frequency of Kef is q=.8
|
|
What will the ph of this solution
: You Have 500 mL of a buffer solution containing .2 M CH3COOH and .3 M CH3COONa. What will the pH of this solution be after the addition of 20 mL of 1.00 M NaOH solution? (Ka=1.8x10^-5)
|
|
Horizontal sequence of sedimentary strata
: What fundamental concept states that in a horizontal sequence of sedimentary strata, each higher bed is younger than the bed below it?
|
|
What are the equilibrium frequencies of hobo
: If the initial frequency of the 'Hobo' gene is 0.8, what will p and q be after one generation of selection?
|
|
Corporation after the property distribution problem
: In addition, the corporation incurred a Federal income tax liability of $112,000, paid life insurance premiums of $3,500, and received term life insurance proceeds of $55,000 on the death of an officer. a. What is Peter's taxable income? b. What i..
|
|
Explain what is the molarity of the acetic acid solution
: solution requires 18.6 mL of 0.200 M NaOH to reach the end point of the titration, what is the molarity of the acetic acid solution? CH3COOH (aq) + NaOH(aq) CH3COONa (aq) + H2O(l)
|
|
Which of these is not refractive medium of the eye
: Which of these structures contains the largerst number of cones?
|
|
What was david view of god
: What was David's view of God? What clues do Psalm 8 and 1 Samuel 17:37 give us? Are there other Scriptures that describe his view of God? Does that view change at different points of his life?
|
|
What are the equilibrium frequencies of two alleles
: Assuming panmixia, what percentage of general population will be superheroes (homozygous recessive) in a population in equilibrium?
|