ACCT 730 - Week 2

# ACCT 730 - Week 2 - AC CT 730 PROBLEM SET#2 Chapter 4...

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AC CT 730 PROBLEM SET #2 Chapter 4: Problems 26-30 Chapter 5: 24, 33, and 42 4- #26: a. Sam's recognized gain is \$6,000 because he receives \$6,000 in cash (boot) => long-term capital gain => tax at 0%/15% preferential rate b. Sam's basis in the Pine stock = 24,000.00 c. Pine Corporation's basis in the inventory = 36,000.00 d. Carl's recognized gain is \$9,000 because she receives \$9,000 in cash (boot) => long-term capital gain => tax at 0%/15% preferential rate e. Carl's basis in the Pine stock = 36,000.00 f. Pine Corporation's basis in the equipment = 54,000.00 g. Lucy will have no recognized gain nor loss. h. Lucy's basis in the Pine stock = 15,000.00 i. Pine Corporation's basis in the secret process = 15,000.00 j. Sylvia will have no recognized gain nor loss. k. Sylvia's basis in the Pine stock = 30,000.00 4- #27: a. Mark has no recognized gain or loss. b. Mark's basis in the Maple Corporation stock is = 190,000.00 c. Maple Corporation's basis in the installment obligation is = 140,000.00 d. Gail has no recognized gain or loss.

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e. Gail's basis in the Maple Corporation stock is =
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ACCT 730 - Week 2 - AC CT 730 PROBLEM SET#2 Chapter 4...

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