Reference no: EM131286330
BIG Inc. distributed land to an individual shareholder in a nonliquidating distribution. On the date the land was distributed, BIG Inc.’s adjusted basis in the land was $20,000, the fair market value of the land was $75,000, and the land was encumbered by a $35,000 mortgage, which liability was assumed by the shareholder. The corporation’s earnings and profits were $300,000 on the last day of the year in which the distribution was made after taking into effect any impact of the distribution on the corporation’s earnings and profits. As a result of the distribution, how much is the amount of dividend income to the shareholder, and what is the shareholder’s basis in the distributed property?
A. Dividend income of $20,000 and basis of $20,000.
B. Dividend income of $40,000 and basis of $20,000.
C. Dividend income of $40,000 and basis of $40,000.
D. Dividend income of $40,000 and basis of $75,000.
|
What legal issues are related to the given right of access
: Using the internet and course resources, research whether the press has right of access to terrorist events and areas. What legal issues are related to this right of access. How does this impact the First Amendment?
|
|
One class of stock outstanding
: FAS Inc. had one class of stock outstanding. Assume that FAS Inc.’s current earnings and profits were $200,000, there were no accumulated earnings and profits, and Fred’s total basis in his stock before the redemption was $20,000. What is Fred’s basi..
|
|
List and explain the steps in promotion planning
: List and explain the steps in promotion planning.- Explain the hierarchy of effects and how it is used in communication objectives.- Describe the major ways in which firms develop marketing communication budgets.
|
|
Corporation recognize as a result of the distribution
: XYZ Corporation distributed land Jim, its sole shareholder, in a liquidating distribution. At the time of the distribution, the land had a fair market value of $120,000 and XYZ Corporation’s adjusted basis in the land was $100,000. The land was encum..
|
|
Which liability was assumed by the shareholder
: BIG Inc. distributed land to an individual shareholder in a nonliquidating distribution. On the date the land was distributed, BIG Inc.’s adjusted basis in the land was $20,000, the fair market value of the land was $75,000, and the land was encumber..
|
|
Distributed to an individual shareholder land
: ABC Inc. had current earnings and profits of $50,000 when it distributed to an individual shareholder land that the corporation held as an investment. There were no other transactions that might affect ABC Inc.’s earnings and profits for the year. Wh..
|
|
What specific roles do these think tanks have
: What specific roles do these think tanks have, which policy actors (interest groups, sub governments, branches of government) seem to be driving this specific tank?
|
|
Tax consequences of the transaction is accurate
: Larry formed Sleuth Corporation in order to incorporate the detective agency business that he had been operating for several years as a sole proprietorship. In exchange for the assets transferred, Larry received 100 percent of the stock of the corpor..
|
|
What are the salient characteristics of each
: From your readings and experience, discuss the basic differences between the acquisition of capital equipment and business services. What are the salient characteristics of each?
|