User Account

All Pages

What are the tax consequences of the liquidation

Assignment Help Accounting Basics
Reference no: EM132662463

Problem - On April 23, 2019, Auk Corporation acquires 100% of the outstanding stock of Amazon Corporation (E & P of $750,000) for $1,200,000. Amazon Corporation has assets with a fair market value of $1,400,000 (basis of $800,000), no liabilities, and no loss or tax credit carryovers. Auk Corporation files a timely § 338 election. Assume that both the aggregate deemed sale price (ADSP) and adjusted grossed-up basis (AGUB) are $1,306,329.

Required -

a. What are the tax consequences of the § 338 election to Amazon Corporation and to Auk Corporation?

b. Assume that Amazon Corporation is liquidated immediately following the § 338 election. What are the tax consequences of the liquidation to Amazon Corporation and to Auk Corporation?

Reference no: EM132662463

Questions Cloud

What percentage of entering students complete the program : Even if you do not currently plan to seek further education beyond the bachelor's degree, the Department of Psychology wants to be sure, before you graduate.
On what date does a qualified stock purchase occur : For purposes of the § 338 election, on what date does a qualified stock purchase occur? What is the due date for making the § 338 election
Individual traits and corporate culture : An individual manager's ability to make ethical decisions is influenced by many factors, such as individual traits and corporate culture.
Determine the direct labour rate variance : During the month 2900 hours at a total cost of $17 400 were used to produce 1000 units. Determine the direct labour rate variance
What are the tax consequences of the liquidation : Assume that Amazon Corporation is liquidated immediately following the § 338 election. What are the tax consequences of the liquidation
Compute for the critical price : You have tresury bill amounting to 65000 in your account you want to short sell 1000 at 1.25 per share. Compute forthe critical price.
What role does ethics play in conscious capitalism : What role does ethics play in conscious capitalism and how do the ethics of conscious capitalism impact management tactics within an organization?
Examine ethical dilemmas with particular emphasis : Examine ethical dilemmas with particular emphasis on business decision making in situations of ambiguity. Write effective business messages that meet the needs.
Compute what is the margin of safety ratio : Compute What is the margin of safety (MOS) ratio? (Input your answer as a percentage rounded to 2 decimal places (i.e., 0.1567 = 15.67%).)

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd