C12-Chp-06-3C-Sell-or-Liquidate-Corp

C12-Chp-06-3C-Sell-or-Liquidate-Corp - Tab 1-Sell...

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Unformatted text preview: Tab 1-Sell & Liquidate-PRB File: de8f1a736a7a33a81000bb4936667941a2212013.xls Page 1 of 4 Balance Sheet for JanCorp Book Value FMV H-W Txt Code Sub Cash $600,000 $600,000 Receivable 100,000 100,000 Land and Building 500,000 1,400,000 Accumulated Depreciation (100,000) Total Assets $1,100,000 $2,100,000 Notes payable to bank (100,000) (100,000) Total Owner Equity $1,000,000 $2,000,000 Common Stock (Jan's original cash investment) 100,000 2,000,000 Additional Paid in Capital (Jan's original cash investment) 200,000 Retained Earnings (also Earnings & Profits) 700,000 Total Owner Equity $1,000,000 $2,000,000 Case 1. Jan Corp. sells building to Big Corp. & liquidates Jan Corporation sells land & building to Big Corporation for $1,400,000. Jan Corporation collects receivable, pays debt. Jan Corp. Liquidates. 29 1001 11 11 30 6-23 331 1 h 1012 Jan Corp. - Selling price of building and land by Jan Corporation. Jan Corp. - Gain on sale of building and land by Jan Corporation. Jan Corp. - Income tax rate on gain on sale of building and land Jan Corp. - Income tax paid on gain on sale of building and land Jan Corp. - Proceeds from sale of building, minus income tax paid Jan Corp. - Cash & receivables balances before sale of property Jan Corp. - Total cash for payment of debt, and distribution to Jan Jan Corp. - Payoff the Notes payable Jan Corp. - Cash (after paying tax & mortgage) distributed to Jan Jan. Basis of Jan's stock in Jan Corporation Jan. Gain on receipt of liquidating distribution from Jan Corporation. Jan. Tax rate that Jan pays on liquidation gain Jan. Federal income tax owed by Jan on liquidation gain Jan. Total cash distributed to Jan from above Jan. Cash Jan has after payment of of her personal income tax Big Corp . (They have bought fixed asset.) Building basis Tab 1-Sell & Liquidate-SOL File: de8f1a736a7a33a81000bb4936667941a2212013.xls Page 2 of 4 Balance Sheet for JanCorp Book Value FMV H-W Txt Code Sub Cash $600,000 $600,000 Receivable 100,000 100,000 Land and Building 500,000 1,400,000 Accumulated Depreciation (100,000) Total Assets $1,100,000 $2,100,000 Notes payable to bank (100,000) (100,000) Total Owner Equity $1,000,000 $2,000,000 Common Stock (Jan's original cash investment)...
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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-06-3C-Sell-or-Liquidate-Corp - Tab 1-Sell...

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