C12-Chp-04-2-Homework-Prb-Corp-Organ-2012 -...

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a26d88caae3e4256e572d4d6d13868aac1f7b2ef.doc. Page 1 of 3 First Name_________________________Last Name: ______________________________________ Home work-Chapter 4. On the right side of the page enter letter of the best answer for each question. Enter answers on page found in: C11-Chp-04-2-HW-Sol-Corp-Tax-Excel-2011-Answer Sheet Turn in one copy of completed answer sheet at the start of class. (26 @ 4 Pts. = 104) 1 [Pg. 2-8, § 301.7701] Bob Moon forms Moon Enterprises LLC (Limited Liability Company) during the year. What form must Moon Enterprises LLC file in order to elect to be taxed as a C corporation? a. Form 1065 (U. S. Partnership Tax Return) b. Form 8832 (Entity Classification Election) c. Form 1120 (U. S. Corporation Income Tax Return) d. Form 7004 (Application for Extension of time to file for corporations) 2 [Pg. 4-2 § 1001] IBM Corporation needs to expand it manufacturing facilities in the Charlotte area. Mr. Taxpayer paid $30,000 for 5 acres of land that is needed by IBM. Taxpayer owes $5,000 on a mortgage on the land. IBM has offered to trade IBM stock worth $100,000 for the 5 acres of land owned by Mr. Taxpayer and IBM will assume the mortgage of $5,000. How much is the gain to be recognized by Mr. Taxpayer as a result of this exchange? a. Zero b. $5,000 c $70,000 . d. $75,000 3 [Pg. 4-3, § 358] The mechanism that allows for gains to be deferred and recognized at a later date upon disposition of the second asset is: a. Credit disallowance b. Loss disallowance c. Basis adjustment 4 [Pg. 4-5 § 368(c ) ] Jones incorporated a sole proprietorship by exchanging all the proprietorship's assets for the stock of Nu Co., a new corporation. To qualify for tax-free incorporation, Jones must be in control of Nu immediately after the exchange. What percentage of Nu's stock must Jones own to qualify as "control" for this purpose? a. 50.00% b. 51.00% c. 66.67% d. 80.00% CPA 11-93 5 [Pg. 4-5 § 1001, § 1.1001-2(a), text footnote 6] Dan’s neighbor started Local Corporation in 2001 and the neighbor has always owned all of Local's 40,000 outstanding shares. Local Corporation was in need of a building for expansion and Dan’s building was available. Dan’s basis in the building was $800,000. In 2011, Dan invested the building into Local Corporation and received 120,000 newly issued shares of Local Corporation, raising the amount of outstanding stock to 160,000 shares. The Local Corporation stock received by Dan was worth $1,180,000.
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This note was uploaded on 03/09/2012 for the course ACCT 6120 taught by Professor Godfrey,h during the Spring '08 term at UNC Charlotte.

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C12-Chp-04-2-Homework-Prb-Corp-Organ-2012 -...

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