Mid-term 3.docx - Par Corp acquired the assets of its wholly owned subsidiary Sub Corp under a plan that qualified as a tax-free complete liquidation of

Mid-term 3.docx - Par Corp acquired the assets of its...

  • University of Tampa
  • ACC 653
  • anhthu2402
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Par Corp. acquired the assets of its wholly owned subsidiary, Sub Corp., under a plan that qualified as a tax-free complete liquidation of Sub. Which of the following of Sub’s unused carryovers may be transferred to Par? Excess CharitableContributionsNet OperatingLossYes – Yes Vernon receives a truck from Berry Trucking Company as a distribution in complete liquidation. Vernon’s basis in the stock of Berry Trucking Company is $2,000. The fair market value of the truck on the date of the distribution is $30,000. There is a $15,000 loan on the truck, which Vernon assumed. What is the basis of the truck to Vernon? Ms. Glantz owns all 100 shares of Remsen Company. These shares were all acquired on February 18, 2008. Ms. Glantz’s basis in the stock is $20,000. Remsen Company adopted a plan of complete liquidation and distributed $56,000 to Ms. Glantz. Ms. Glantz received $16,000 in 2016 and $40,000 in 2017. How much gain or loss is recognized by Ms. Glantz in 2016 and 2017?In a Type B reorganization as defined by the Internal Revenue Code, theI.Stock of the target corporation is acquired solely for the voting stock of either the acquiring corporation or its parent.II.Acquiring corporation must have control of the target corporation immediately after the acquisition.Both correctZeb, an individual shareholder, owned 25% of Towne Corporation stock. Pursuant to a series of stock redemptions, Towne redeemed 10% of the shares of stock Zeb owned in exchange for land having a fair market value of $30,000 and an adjusted basis of $10,000. Zeb’s basis for all of his Towne stock was $200,000. Zeb reported the redemption transaction as if it were a dividend. Zeb’s basis in the land and hisTowne stock (immediately after the redemption) isLand, $30,000; stock, $200,000.(Land is FMV with no basis reduction. )Which one of the following is nota corporate reorganization as defined in the Internal Revenue Code?
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  • Spring '17
  • Taxation in the United States, fair market value

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