corporate tax, L has business assets worth $6,000,000, NOL carryovers of $1,000,000, Taxation

corporate tax, Taxation

Assignment Help:

L has business assets worth $6,000,000, NOL carryovers of $1,000,000 expiring in 14 years, and NOL carryovers of $1,400,000 expiring in 15 years. 100% of L’s stock is worth $8,000,000. The long-term tax exempt rate is 5%. The current third party market interest rate is 6%. Commercial bank mortgage rates are 3%.

(a) What will the § 382 limitation be if an ownership change occurs with respect to L’s stock? Assuming sufficient taxable income, how long will it take to fully utilize the NOLs?

(b) Same questions and facts as (a) above, except L has minimal assets and 100% of its stock is worth $2,000,000.

4. A owns all of the stock of X. The stock’s basis is $2,300. X has a total of current earnings and profits of $1,500 but accumulated earnings and profits of negative $500 (i.e., an accumulated deficit).

a) X distributes $1,200 cash to A “with respect to his stock” (i.e., as a state law “dividend”). How is the $1,200 distribution treated for tax purposes?

b) Alternatively, X distributes $4,000 cash to A “with respect to his stock” (i.e., as a state law “dividend”). How is the $4,000 distribution treated for tax purposes?

1. A contributes property worth $2,000 to X, a newly formed corporation, in exchange for 67 shares of X stock. As part of the same transaction, B contributes services worth $1,000 to X in exchange for X’s remaining 33 shares of stock.

a) Does § 351 apply to the contributions of A and B? Why or why not?

b) How much gain does X Corporation recognize on the transaction with B?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages

corporate tax, Taxation

Related Discussions:- corporate tax

Compute income tax liability, Dan and Cheryl are married, file a joint retu...

FBT and Depreciation, i wana make a assginment help

Taxation law problems, 2000 words

Calculate the tax, Sue, Scarlett and Sally are in a partnership together pr...

WCT at AndarPradesh, How to raise an invoice with WCT for Civil constructio...

Advanced Tax, The Madison Restaurant was formed a S corporation at the end ...

Computation, "Alfred E. Old and Beulah A. Crane, each age 42, married on Se...

need help for doing my homwork, I have 95 qustions and I need to get ur he...

Cgt provisions, In relation to the CGT provisions, which of the following s...

Online Exam, Hi Dear, could you do the online exam with me !! Thank you

Write Your Message!

Featured Services

Online Tutoring

Project Development

Exam Preparation

Course Help

Assignment Help

Popular Subjects

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT