Corporations recognized gain or loss on the liquidation

Assignment Help Financial Accounting

Reference no: EM131290030

Goose Corporation has a basis of $2,400,000 in the stock of Swift Corporation, a wholly owned subsidiary acquired 30 years ago. Goose liquidates Swift Corporation and receives assets that are worth $2,000,000 and have a basis to Swift of $1,700,000.

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 no gain or loss of $. As a result, Goose’s basis in the Swift stock is now $____________.

b. Determine Goose Corporation’s basis in the assets received in liquidation.

Goose Corporation has a carryover basis of $______________ in the assets received in liquidation.

Reference no: EM131290030

Questions Cloud

Compute the amortization cost for the year : Sharpie Corporation has a global workforce of 400 employees. There was a recent negotiation for a pension plan with an effective date of January 1, 2015. The amount of prior service cost for the new pension plan is $4,823,000. The agreement was to fu..

Defined benefit pension plan-compute pension expense : The City of Austin has a defined benefit pension plan. The Projected Benefit Obligation on January 1, 2015 is $10,000,000. This was based on a 10% discount rate. The fair value of the pension fund (plan assets) on January 1, 2015 is $10,400,000. The ..

What is the authoritative literature addressing revenue : Employees at your compabny disagree about the accounting for sales returns. The sales manager believes thta granting more generous return provisions can give the company a competitive edge and increase sales revenue. What is the authoritative literat..

Treated as qualifying stock redemption : Indigo Corporation wants to transfer cash of $150,000 or property worth $150,000 to one of its shareholders, Linda, in a redemption transaction that will be treated as a qualifying stock redemption. If Indigo distributes property, the corporation wil..

Corporations recognized gain or loss on the liquidation : Goose Corporation has a basis of $2,400,000 in the stock of Swift Corporation, a wholly owned subsidiary acquired 30 years ago. Goose liquidates Swift Corporation and receives assets that are worth $2,000,000 and have a basis to Swift of $1,700,000. ..

Determine whether variable costing income from operations : The beginning inventory is 3,000 units. All of the units manufactured during the period and 3,000 units of the beginning inventory were sold. The beginning inventory fixed costs are $25 per unit, and variable costs are $55 per unit. Determine whether..

Holding too many liabilities-not enough equity to pay debt : Which of the following statements are true? Holding too many liabilities and not enough equity to pay debt does not put a company at risk Raising additional equity is an activity that can always be done quickly A high amount of debt relative to the v..

The highlanders is nationally recognized drum : The Highlanders is a nationally recognized drum and bagpipers group that performs in parades and official ceremonies from weddings to inaugurations to funerals. What is a typical range in annual costs contributed by Jake into this hobby of performing..

The issued ordinary shares and gained control : On 1 July 2011, A Ltd acquired all the issued ordinary shares and gained control of Z Ltd. Prepare the consolidation worksheet entries at 30 June 2016. On 4May 2016, Z Ltd acquired $19,000 inventory from A Ltd. This inventory originally cost A Ltd $1..

User Account

All Pages