chapt 15 quizz - A distribution is not a dividend if the...

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Answer: True False Incorrect Marks for this submission: 0.00/1.00. Question 2 Marks: 1.00 Anne owns 300 shares of Davenport Co. She acquired the shares three years ago. Her adjusted basis in the shares is $100,000 and their fair market value is $20,000. In July, she received stock rights worth $4,000. She sold the rights in September for $5,000. Her gain or loss on the sale of the rights is: Choose one answer. a. No gain or loss b. $5,000 short-term capital gain c. $5,000 long-term capital gain d. $3,333 short-term capital gain e. $3,333 long-term capital gain f. none of the above Incorrect Marks for this submission: 0.00/1.00. Question 3 Marks: 1.00 Susco distributed two assets in a transaction that qualified as a redemption. One asset had an adjusted basis of $100,000 and a fair market value of $135,000. The other asset had an adjusted basis of $220,000 and a fair market value of $200,000. As a result of these distributions Susco has: Choose one answer. a. A recognized loss of $20,000 and no recognized gain b. A recognized gain of $35,000 and no recognized loss c. A net gain of $15,000
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d. No recognized gain or loss e. None of the above Incorrect Marks for this submission: 0.00/1.00. Question 4 Marks: 1.00 A corporation is not required to recapture depreciation when it distributes appreciated Code Sec. 1245 property to its shareholders. Answer: True False Correct Marks for this submission: 1.00/1.00. Question 5 Marks: 1.00 Answer: True False Correct Marks for this submission: 1.00/1.00. Question 6 Marks: 1.00 Grounded Air Flight Company had E&P of $50,000 when it distributed land held as an investment with a basis of $10,000, a value of $50,000, but subject to a liability of $30,000 to an individual shareholder. Choose one answer. a. $50,000 b. $70,000 c. $30,000 d. $60,000 Incorrect Marks for this submission: 0.00/1.00.
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Question 7 Marks: 1.00 In computing current E&P, the realized (but not recognized) gain on an involuntary conversion is added to taxable income. Answer: True False Correct Marks for this submission: 1.00/1.00. Question 8 Marks: 1.00 Julia and Jake own are equal shareholders of Mump Inc. Mump Inc.’s current E&P is $40,000 and its accumulated E&P is $18,000. Jake sold his shares to Jessica on July 31 for $250,000. Mump Inc. made a $50,000 distribution to shareholders on June 30 and on December 31 (total distributions equal $100,000). How much dividend income do Jake and Jessica recognize? Choose one answer. a. Jake- $25,000; Jessica- $25,000 b. Jake- $10,000; Jessica- $19,000 c. Jake- $19,000; Jessica- $10,000 d. Jake- $50,000; Jessica- $0 Incorrect Marks for this submission: 0.00/1.00. Question
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This note was uploaded on 02/11/2012 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.

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chapt 15 quizz - A distribution is not a dividend if the...

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