LIzzie Week 3 Assignment Chapter 7-8

LIzzie Week 3 Assignment Chapter 7-8 - consolidated the...

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Corporate Reorganizations and Consolidated Corporate Tax Returns 2010 By Cheryl Rhaburn Chapter 7 Problems 26 a) Type D acquisitive b) Type C c) Taxable d) Type F e) Taxable f) Type D split-off g) Type A h) Taxable i) Type G j) Taxable k) Type B l) Type D split-up Problems 28 Latisha would have $50,000 gain; Theo would have no gain. Problems 36 The tax issue in this transaction would be Atep’s gain $50,000; preferred stock, separate transaction. Problems 38 The tax consequence of this transaction would be Split-up Type D reorganization. Chapter 8 Problems 26 Subco separate taxable income Operating income $100 1231 gain $50 Separate tax income $150 Parent separate Taxable Income 1231 loss (50) Dividend Income $160 Separate taxable income $90
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Corporate Reorganizations and Consolidated Corporate Tax Returns 2010 By Cheryl Rhaburn Problems 31 A) I believe that they will make good partners because they have a profitable year and being
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Unformatted text preview: consolidated the other company can help offset the taxable income that the company it limited to. B) I dont believe that they will make a good partner because they will be operating on a loss for two years and that could have an impact on the company C) I believe that they will make a good partner as they will have an addition deduction that they can use on their taxes D) I dont believe that they will make a good partner but then again the subsidiary have to use the parent company tax calendar year. Problems 33 Controlled group, not affiliated. Problems 34 Senior is liable for $2.5 million. Problems 38 Consolidation reduces group liability $37,500....
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LIzzie Week 3 Assignment Chapter 7-8 - consolidated the...

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