User Account

All Pages

What tax issues should jennelle and paula consider

Assignment Help Taxation
Reference no: EM131338178

Assignment

Access p. 11-41 in Chapter 11 of your textbook Prentice Hall's Federal Taxation 2016 Corporations, Partnerships, Estates & Trusts.

Write a minimum 175-word response to each question C:11-24 through C:11-27

IDENTIFICATION QUESTIONS

C:11-24 Jennelle and Paula are equal partners in the J&P Manufacturing Partnership. The partnership will form J&P Corporation by exchanging the assets and liabilities of the J&P Manufacturing Partnership for all the corporation's stock on September 1 of the current year. The partnership then will liquidate by distributing the J&P Corporation stock equally to Jennelle and Paula. Both shareholders use the calendar year as their tax year and desire that the corporation make an S election. What tax issues should Jennelle and Paula consider with respect to the incorporation?

C:11-25 Williams Corporation has operated as a C corporation for the last seven years. The corporation has assets with a $450,000 adjusted basis and an $800,000 FMV. Liabilities amount to $100,000. Dan Williams, who uses a calendar year as his tax year, owns all the Williams Corporation stock. The corporation uses the accrual method of accounting and a June 30 year-end. Dan's CPA has suggested that he convert the corporation to S corporation status to reduce his total corporate/personal federal income tax liability. Dan would like to complete the conversion on the last day of the corporation's tax year. What tax issues should Dan and his CPA consider with respect to the S election?

C:11-26 Peter owns 50% of Air South Corporation, an air charter service. His S corporation stock basis at beginning of the year is $100,000. Air South has not done well this year and will report an ordinary loss of $375,000. What tax issues should Peter consider with respect to the loss?

C:11-27 Glacier Smokeries has been an S corporation since its inception six years ago. On January 1 of the current year, the corporation's two equal shareholders, Adam and Rodney, had adjusted bases of $175,000 and $225,000, respectively, for their S corporation's stock. The shareholders plan to have the corporation distribute land with a $75,000 adjusted basis and a $300,000 FMV in the current year. The shareholders also expect ordinary income to be $125,000 in the current year. What tax issues should Adam and Rodney consider with respect to the distribution?

Reference no: EM131338178

Questions Cloud

Write a summary about the given assignments : write a summary about the given assignments.
Which of the following may be used as variable names in java : Can a Java program have two different variables with the names a Variable and a variable?
Why results were different and why your test was a stronger : Perform the test as it should have been done and find if you come to a different conclusion. Explain why the results were different and why your test was a stronger and more reliable test.
Time value of money calculations use compound interest : If we grow $100 over a period of time, TVM calculations will show the future amount with compound interest, which is not the same as simple interest. Time value of money calculations use compound interest. What is the difference between compound inte..
What tax issues should jennelle and paula consider : Both shareholders use the calendar year as their tax year and desire that the corporation make an S election. What tax issues should Jennelle and Paula consider with respect to the incorporation?
If the firms wacc is 9 percent what is the projects npv : A project has annual cash flows of $7,500 for the next 10 years and then $10,000 each year for the following 10 years.- If the firm's WACC is 9 percent, what is the project's NPV?
What is a compiler and a source program : What is a compiler? What is a source program? What do you call a program that translates Java bytecode into machine language instructions?
Invest now in order to have same amount of money : Ten years ago, Hailey invested $2,900 and locked in a 9 percent annual interest rate for 30 years (end 20 years from now). Aidan can make a 20-year investment today and lock in a 10 percent interest rate. How much money should he invest now in order ..
Estimate the current cost of capital for petsmart : Estimate the current cost of capital for PetSmart.- Assuming that all of the existing debt gets refinanced at this new rate, estimate the value per share after this transaction.

Reviews

Write a Review

Taxation Questions & Answers

  Implications in relation to the taxability

Advise the directors as to the Hong Kong profits tax implications in relation to the taxability of profits of the Korean Company, as well as the profits accruing to the Hong Kong entity involved.

  How much amortization expense on goodwill can ingrid deduct

How much amortization expense on the goodwill can Ingrid deduct in year 1, year 2, and year 3? In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of 5 years for $10,000.

  Question juan luan social security number 454-11-7000 is a

question juan luan social security number 454-11-7000 is a single taxpayer and is employed as an administrative help at

  Question bottle-up inc was organized on 8th january 2001

question bottle-up inc. was organized on 8th january 2001 and made its s election on 24th january 2000. the required

  What percentage of state revenue is accounted by sales tax

What percentage of the state revenue is accounted for by sales tax and individual income tax? Which category will generate more revenue, corporate taxes or license fees?

  Analysis and prepare a brief of case-gregory vs helvering

Federal Income Taxation of Corporations and Shareholders - Analysis and prepare a brief of case-Gregory vs Helvering

  Describe ryan tax consequences with respect to the purchase

Ryan, a lawyer, purchases shares of corporate stock for $20,000 in December of Year 1. At the end of Year 2, they are worth $17,000. He sells the shares in October of Year 3 for $13,000. Describe Ryan's tax consequences with respect to the purchas..

  Compute ivory corporation 2011 deduction

On December 31, 2011, Ivory accrued a bonus of $50,000 to each shareholder. Assuming that the bonuses are paid to the shareholders on February 1, 2012, compute Ivory Corporation's 2011 deduction for the above amounts.

  What type of fringe benefit mention

To a great extent, transportation project planning is described as a public activity where purely financial return is not the overriding benefit to be attained - Explain the GST consequences of arrangement for both parties.

  Journal entry of the baxter company

Baxter Company began operations in 2006 and was profitable through 2009, during which time the tax rate was 30%. At the end of 2010, the company reported a pretax operating loss of $135,000 for both financial reporting and income taxes.

  What could explain fredas willingness to spread her salary

What could explain Freda's willingness to spread her salary over a longer period of time? Did Freda actually or constructively receive $252,000 in 2016?

  Part a explain why the payment to the taxpayer in fct v

part a explain why the payment to the taxpayer in fct v dixon 1952 86 clr 540 was assessable income but the payment in

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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