chapt 14 quizz - Bob owns all 50 shares of Max Company,...

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Bob owns all 50 shares of Max Company, valued at $50,000. His friend, Lee, owns equipment worth $50,000. Lee’s adjusted basis in the equipment is $20,000. Lee transfers the equipment to Max Company in exchange for 50 shares. Lee has a: Choose one answer. a. $30,000 realized and $30,000 recognized gain b. $30,000 realized and $0 recognized gain c. $0 realized and $0 recognized gain d. none of the above Incorrect Marks for this submission: 0.00/1.00. Question 2 Marks: 1.00 Centor Corporation's unappropriated retained earnings on January 1, 2011, were $678,000. For 2011 its net income per books was $120,000. It paid cash dividends of $93,000 in 2011 and it appropriated $75,000 of retained earnings during 2011. Centor Corporation's unappropriated retained earnings on December 31, 2011, were: Choose one answer. a. $630,000 b. $798,000 c. $603,000 d. $510,000 e. $585,000 f. $705,000 Correct Marks for this submission: 1.00/1.00. Question 3 Marks: 1.00 Options to buy stock constitute stock for Code Sec. 351 purposes, but only if the stock so qualifies.
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Answer: True False Correct Marks for this submission: 1.00/1.00. Question 4 Marks: 1.00 Algernon Amsley transferred the following to his controlled corporation in exchange for stock: Basis Value Building $20,000 $50,000 Cash 10,000 10,000 Mortgage on building 40,000 40,000 IBM stock 15,000 12,000 Algernon must recognize a gain of: Choose one answer. a. $20,000 b. $0 c. $10,000 d. $27,000 Incorrect Marks for this submission: 0.00/1.00. Question 5 Marks: 1.00 Depreciation claimed on a given asset will never be recaptured upon a Code Sec. 351 transfer. Answer: True False Incorrect Marks for this submission: 0.00/1.00.
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Question 6 Marks: 1.00 Exclusive of capital transactions, Pixie Corp. had $100,000 of taxable income. Its capital gains and losses were: Short-term gain $10,000 Long-term gain 12,000 Short-term loss (20,000) Long-term loss 5,000 Pixie's taxable income for the year was: Choose one answer. a. $97,000 b. $122,000 c. $100,000 d. $107,000 Incorrect Marks for this submission: 0.00/1.00. Question 7 Marks: 1.00 Code Secs. 267 and 1239 apply to transactions between shareholders and their "controlled" corporations. Answer: True False Correct Marks for this submission: 1.00/1.00. Question 8 Marks: 1.00 A sale of Code Sec. 1244 stock results in ordinary income if sold at a gain.
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Answer: True False Incorrect Marks for this submission: 0.00/1.00. Question 9 Marks: 1.00 X Corporation's taxable income for 2011 is $1,500,000. It does not have an alternative minimum tax liability in 2011 but it does have to recapture $10,000 of previously taken tax credits. X Corporation made $490,000 in prepayments toward its 2011 tax liability. What is X Corporation's payment or refund due for 2011? Choose one answer.
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chapt 14 quizz - Bob owns all 50 shares of Max Company,...

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