Neil Gonzales, ACCT 420-V3WW, Assignment 5-3 Final

Neil Gonzales, ACCT 420-V3WW, Assignment 5-3 Final - Neil...

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Neil Gonzales Assignment 5-3 Chapter 20 Practice Problems 5 points Due: May 29 Purpose To assess your ability to recommend tax strategies for the corporation and shareholders in a complete liquidation. L 3 Traits Action Items 1. Complete problems 18, 20, 21, 28, 32, and 33 in Chapter 20 of West Federal Taxation . Chapter 20: 18. The stock of Hawk Corporation is owned equally by three sisters, Michele, Melanie, and Miranda. Hawk owns land (basis of $250,000, fair market value of $210,000) that it has held for investment for eight years. When Michele’s basis in her stock is $225,000, Hawk distributes the land to her in exchange for all of her shares. What are the tax consequences for both Hawk and Michele if the distribution is: a. A qualifying stock redemption? b. A liquidating distribution? 20. Green Corporation has two equal shareholders, Mark and Megan, who are grandparent and grandchild. In 2001, Green purchased land at a cost of $300,000. In the current year and pursuant to a complete liquidation, Green distributes the land (fair market value of
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This note was uploaded on 05/25/2011 for the course ACCT 420 taught by Professor Fidler during the Winter '08 term at Franklin.

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Neil Gonzales, ACCT 420-V3WW, Assignment 5-3 Final - Neil...

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