chapter 16 problems - purchases 100 shares for 2,000 5...

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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) loss 15,000 b) no gain and loss 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) 70 % shareholder 55,000 gain 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 5,000 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) On august 1st 2011 d) gain 135,000 36) Ray owns 400 shares of stock in Fly Ltd inherited 300 7months ago estate tax value 15,000
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Unformatted text preview: purchases 100 shares for 2,000 5 months ago Building received 50,000 for 400 shares mortgage 38,000 a) loss-5,000 b) basis in building 50,000 42) Puzzles corporation ownership jay 60% scott 40% puzzles assets cash 140,000 building basis 80,000 building FMV 60,000 a) distibutes building plus cash 60,000 jay 140,000 80,000 scott no loss b) cash to jay 120,000 cash to scott 20,000 no recognition c) no loss d) no recognition 47) Meyer Corporation Distribution Land basis 40,000 land FMV 90,000 securities basis 45,000 securities FMV 22,000 9 months ago equipment basis 10,000 equipment FMV 18,000 12,000 depreciation 4 yrs ago supplies basis 5,000 supplies FMV 5,700 last year installement basis 26,000 installement FMV 50,000 3 yrs ago machinery basis 13,000 5 yrs ago machinery FMV 8,000 15,000 depreciation a) gain 27,700 b) gain 75,000 c) gain 75,000...
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