C12-Chp-06-3B-Stock-Redemption-for-Property - Tab...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
0a56290434bc797898d4c51a39d6cd7d636f5c00.xlsx Page 1 of 3 No. These are old CPA Exam questions, placed in a spreadsheet format. H-W Txt Sec. Sub Case 1 Case 2 Case 3 1 Basic Information Hart Bart Day Individual (Hart, Bart or Day) is a 50% owner. Case 1, Hart owns 50% of stock of corporation. Case 1a, Hart receives $5,000 as a redemption, for one-half of his stock (25% of outstanding stock) Case 1b, Hart receives $5,000 in a liquidation. for ALL of his stock Repeat for Case 2. Bart and Case 3. Day Individual's basis in stock before distribution $9,000 $9,000 $50,000 Distribution from Corporation to Individual Cash $5,000 $5,000 $25,000 Land (could be other non-cash asset) Adjusted Basis of land to corp. before distribution $7,000 $15,000 Fair Market Value of land on date of distribution $10,000 $20,000 1a Redemption: (Redeem one-half of owner's stock) All redemptions get exchange treatment Gain Recognized by Corporation N/A 3 6-12 311 Basis of corporate stock that was redeemed? Gain or Income Recognized by Stockholder 6-13 302 b 2 Loss Recognized by Stockholder (Individual) 302 b 2 Stockholder's basis in non-cash property received 302 d Stockholder's Remaining Basis in Corporate Stock How would your answers differ above if distributions were for 10%, not 50% of stock? 1b Liquidation--corporation goes out of business This distribution is all the stockholder will ever get. 9, 10 Gain Recognized by Corporation N/A 6-18 336 Basis of all corporate stock owned by stockholder? Gain or Income Recognized by Stockholder
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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.

Page1 / 3

C12-Chp-06-3B-Stock-Redemption-for-Property - Tab...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online