Path: K:/TL-WFT-05-0802/Application/TL-WFT-05-0802-004_V2-SM.3d Date: 11th April 2006 Time: 11:25 User ID: 40520 CHAPTER 4 CORPORATIONS: ORGANIZATION AND CAPITAL STRUCTURE SOLUTIONS TO PROBLEM MATERIALS Question/ Problem Topic Status: Present Edition Q/P in Prior Edition 1 Compare § 351 and § 1031 in terms of justification and effect Unchanged 1** 2 Possible gain and/or loss recognition on a § 351 transfer Unchanged 2** 3 Stock issued for services New *4 Taxation of boot received Unchanged 5** 5 Receipt of nonqualified preferred stock in exchange for property transferred to a controlled corporation New 6 Explain control requirement of § 351; effect of specific situations on control requirement Unchanged 6** *7 Incorporating an existing business Unchanged 7** 8 Types of consideration received in exchange for property; alternatives other than stock Unchanged 8** 9 Charitable gift of stock shortly after § 351 exchange New 10 Shareholder who transfers property and services for stock as part of control group Unchanged 10** 11 Transfers to an existing corporation Unchanged 11** 12 Effect of debt on basis in corporate stock in a § 351 transfer Unchanged 12** 13 Bona fide business purpose requirement in transfer of liabilities to a controlled corporation Unchanged 13** 14 Rationale for § 357(c) Unchanged 14** 15 Impact of various attributes on stock basis calculation New 16 When stock issued for services is deductible/ not deductible Unchanged 16** 17 Holding period rules for corporation and shareholder contrasted Unchanged 17** 18 Basis rules for property acquired from a shareholder and from a nonshareholder Unchanged 18** 4-1
Path: K:/TL-WFT-05-0802/Application/TL-WFT-05-0802-004_V2-SM.3d Date: 11th April 2006 Time: 11:25 User ID: 40520 Question/ Problem Topic Status: Present Edition Q/P in Prior Edition 19 Advantages of utilizing debt in the capitalization of a corporation Unchanged 19** *20 Relevant factors in reclassification of debt as equity New 21 Tax treatment of worthless stock New 22 Shareholder loan to corporation: business or nonbusiness bad debt? Unchanged 22** 23 Tax treatment in selected situations where corporate stock has declined in value Unchanged 23** 24 Selection of assets to transfer to corporation Unchanged 24** 25 Selection of assets to transfer to corporation Unchanged 25** *26 Formation of corporation; gain or loss on transfer; transfers of property, basis computations New *27 Formation of corporation; gain on transfer; basis of stock; basis of property Unchanged 27** 28 Formation of corporation with transfer of property from several shareholders at different times Unchanged 28** 29 Transfer of property to a corporation after date of formation of corporation Modified 29** 30 Transfers to existing corporation Unchanged 30** 31 Transfer of property and services for stock Unchanged 31** 32 Subsequent transfers to corporation Unchanged 32** *33 Formation of corporation; transfer of services for stock Unchanged 33** 34
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