CHAPTER 20--CORPORATIONS AN

Andy contributes land basis of 50000 fair market

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110.Andy contributes land (basis of $50,000; fair market value of $200,000) for a 25% interest in a partnership. The land is subject to a mortgage of $40,000 which the partnership assumes. As a result of the transfer, Andy: A. Has a basis in the partnership of $10,000. B. Has a basis in the partnership of $20,000. C. Has a basis in the partnership of $40,000. D. Must recognize a gain of $30,000. E. None of the above. 111.In determining a partner’s basis in the partnership interest, which of the following reflects a correct adjustment? 112.Travis and his three sisters are equal partners in the Heron Partnership. In 2008, Travis sells property (basis of $300,000) to Heron for its fair market value of $280,000. In 2010, Heron sells the property to a third party for $290,000. Which of the following statements correctly describes these transactions? 14
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113.During 2010, a calendar year taxpayer had taxable income of $150,000 and the following capital asset transactions: Long term: Gain $10,000 Loss 8,000 Short term: Gain $ 9,000 Loss 6,000 How are these transactions handled if the taxpayer is: a. An individual? b. A C corporation? 114.During 2010, a calendar year taxpayer had taxable income of $200,000 and the following capital asset transactions: Long term: Gain $ 8,000 Loss 11,000 Short term: Gain $10,000 Loss 14,000 How are these transactions handled if the taxpayer is: a. An individual? b. A C corporation? 15
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115.During 2010, a calendar year taxpayer had the following capital gains and losses: Long-term capital gain $3,000 Short-term capital gain 2,000 In 2009, the same taxpayer had a net long-term capital loss of $4,000 which it could not utilize. Assume all capital gains and losses result from the sale of securities held as investments. How are these transactions handled if the taxpayer is: a. An individual? b. A C corporation? 116.In December 2010, Oriole Company’s board authorizes a cash donation of $30,000 to the Monroe County School District. The amount authorized is paid to the county in two $15,000 amounts in January and February 2011. Presuming a calendar year and accrual method taxpayer, when is the charitable contribution deduction available if Oriole Company is a: a. Partnership? b. C (regular) corporation? 16
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117.Magenta Company, a clothing retailer, donates children’s clothing to Goodwill (a qualified charity). The clothing is part of Magenta’s inventory and has an adjusted basis of $60,000 and a fair market value of $90,000. What is the amount of Magenta’s charitable donation if it is a: a. Partnership?
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  • Spring '12
  • honig
  • Corporation, Income tax in the United States, C CORPORATION

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