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state_taxes - and Lee the corporation(Florida Orange Inc or...

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Topic: Florida state & local taxes In 2010, Bob and Lee start Florida Orange, Inc. Assume the following Florida state and local taxes: Tax Rate Real and tangible personal property tax Sales tax 2.0% 6.0% Nonrecurring intangibles tax 0.2% Document stamp tax on real estate 0.7% Document stamp tax on other documents 0.35% Required : What is the amount of Florida state and local taxes that will result from the two following transactions? Indicate whether the tax applies to the shareholders – Bob
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Unformatted text preview: and Lee, the corporation (Florida Orange, Inc.), or a third party (e.g., the seller of real estate). Multiple taxes apply to each transaction. Include current and annual taxes. Ignore income taxes. a. They issue 10,000 shares of stock to Bob for $400,000 cash and 10,000 shares of stock to Lee for $300,000 cash plus equipment worth $100,000 (and with an income tax adjusted basis of $30,000). b. Florida Orange buys a building paying $100,000 down and taking out a $400,000 mortgage....
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