Reference no: EM132004335

Questions:

1. Willow Corporation exchanged land valued at $250,000 (adjusted basis = $175,000) for a building owned by Tree Corporation valued at $350,000 (adjusted basis = $200,000) and $50,000 cash. In addition, Willow assumed the $150,000 mortgage on Tree's building. What are Willow and Tree's realized gains or losses on the properties exchanged, respectively?

$75,000, 0

$75,000, $150,000

$225,000, $150,000

$225,000, $200,000

None of the above

2. BarBRanch has had taxable income of $450,000, $570,000, $760,000 and $680,000 in years 2008 through 2011, respectively. What were the equal minimum quarterly estimated tax payments for 2011 that BarBRanch should have made in 2011 to avoid any penalty?

$57,676

$57,800

$64,600

$170,000

3. Forest Corporation had $795,000 of qualified production activities income out of its total income of $950,000 in 2011. Its total wages for the year were $234,000. What is its deduction for its qualified production activities?

$117,000

$85,500

$71,550

$21,060

4. Which of the following is not a required characteristic of a qualifying Section 351 transaction?

If more than 20 percent of the stock is transferred for services, property must also be transferred by the service provider.

Gain may be recognized if the transferor receives something other than stock.

The transferors must control the corporation after the transfer.

Control requires only owning 80 percent of the value of the voting stock

All are characteristics.