This preview shows page 1. Sign up to view the full content.
Unformatted text preview: (2) Original cost $125,000, depreciated using MACRS (39-year property). (3) Original cost $150,000, depreciated using MACRS (7-year property). (4) Original cost $75,000, depreciated using MACRS (5-year property). (5) Original cost $50,000, depreciated using MACRS (7-year property). Required: (a) Does Sec. 351 apply to this corporate formation? Explain why or why not. (b) For each shareholder: (1) compute their realized gain or loss (2) compute their recognized gain or loss (if any) (3) determine the character of the gain or loss (4) compute the basis for the stock received from the corporation (5) determine when the holding period begins for the stock (c) Prepare Celtics tax-basis balance sheet as of September 15, 2011 (assets = liabilities + equity). (d) How does Celtic Corporation treat the services provided by Dennis?...
View Full Document
This note was uploaded on 09/09/2011 for the course TAX 5015 taught by Professor Kelliher,c during the Spring '08 term at University of Central Florida.
- Spring '08