chapter 16 problem solution - Chapter 16 Problems 27, 28,...

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Chapter 16 Problems 27, 28, 31, 32, 36, 42, 47 Initial Submission 27) PPK Corp debentures basis 200,000 FMV of inventory distributed 200,000 basis of inventory distributed 215,000 a) no gain and loss b) basis 215,000 28) basis of land distributed 100,000 FMV of land distributed 70,000 dexter stock basis 15,000 a) 100% share holder 55,000 gain b) no loss 31) FMV truck 25,000 original basis 45,000 adjusted basis 17,000 40% shareholder stock basis 15,000 depreciation on truck 6,000 sale of truck 20,000 a) shareholder will have no gain because he only owns 40% of shares Jeffers will recognize a gain of 10,000 b) shareholder gain 1,000 32) alex purchase of 1000 shares 90,000 liquidation FMV cash 5,000 equipment 10,000 land 30,000 building 120,000 liabilities -20,000 145,000 a) gain 55,000 b) Basis for each item cash 5,000 equipment 10,000 land 30,000 building 120,000 c) The holding period for each item begins on the day after its receipts d) gain 145,000 36) Ray owns 400 shares of stock in Fly Ltd
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