Its 1992 federal taxable income was 400000 and its

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Unformatted text preview: 000 $30,500 $34,500 $40,500 CPA-02158 Explanation Choice "b" is correct. In a corporate formation, the corporation's basis in the transferred assets is the carryover adjusted basis from the shareholder, $500 + $30,000 = $30,500. Choice "a" is incorrect. This answer does not take into account Stone's basis in the cash she contributed. Choice "c" is incorrect. This answer utilizes the property's fair market value as the corporation's basis; it should be the property's adjusted basis. 27 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 Choice "d" is incorrect. This answer utilizes the property's cost as the corporation's basis; it should be the property's adjusted basis. CPA-02159 Type1 M/C A-D Corr Ans: D PM#80 R 3-01 62. CPA-02159 PII May 93 #54 Page 42 What is the usual result to the shareholders of a distribution in complete liquidation of a corporation? a. b. c. d...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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