lizzie Week 1 Assignment Chapter 4

lizzie Week 1 Assignment Chapter 4 - F) June recognized...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 1: Tax Administration and Practice Assignment 2010 By Cheryl Rhaburn Chapter 4: Problems 26, 28, and 36 Problem 26 A) Elizabeth recognized gain is $30,000 ordinary gain; however Zelcova must capitalize the $30,000 as organizational expenditure. B) Elizabeth basis in the Zelcova stock is $30,000. C) Rod recognized gain is $0. The basis for the loss of assets transferred must be reduced by the amount of the net-built-in loss in proportion to each asset’s share of the loss. D) Rod basis in the Zelcova stock is $345,000.00. Rod could elect to the giving Zelcova a higher depreciable basis on the equipment. E) Zelcova basis in the equipment is $300,000. It would benefit Zelcova as it would consider a write-off.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: F) June recognized gain is $20,000 in ordinary gain. G) June basis in Zelcova is $60,000 H) Zelcova Basis in the unrealized receivable is $20,000 I) Whit recognized gain is $90,000. Which 300000-210000. J) Whit basis in Zelcova stock is 0 K) Zelcova basis in the land and building is $300,000. Problem 28 A) Neither partner will recognized a gain on their exchanges B) Clyde would recognized a gain of $260,000 which is $350000-$90000 C) Clydes transfer should be independent of the other two partner transfer. Problem 36 A) The basis of Swift of stock to Paul would 0. B) The property basis to Swift Corporation is $60,000. Week 1: Tax Administration and Practice Assignment 2010 By Cheryl Rhaburn...
View Full Document

Page1 / 2

lizzie Week 1 Assignment Chapter 4 - F) June recognized...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online