the stock. Hank is not related to Dave. The corporation issued no other stock.(a) How much gain does Dave recognize on his exchange? What is the basis to Dave of his 1,000 shares?(b) What gain or loss is recognized by the corporation when it issues its shares to Dave? What is the basis to the corporation of the property it received from Dave?(c) What is the gain or loss that Hank recognizes on this transaction, and what is his basis in his 100 shares?
9. (TCO F) In 2012, OK Company had a net loss of $82,000 fromoperations. Jane owns OK Company and works 20 hours a weekin the business. She has a large amount of income from other sources and is in the 35% marginal tax bracket. Would Jane’s tax situation be better if OK Company were a proprietorship or a C corporation? Explain why.1. (TCO H) On May 18, 2012, Sara purchased 30 shares of ABC stock for $210, and on October 29, 2012, she purchased 90 additional shares for $900. On November 28, 2012, she sold 48shares, which could not be specifically identified, for $576, andon December 8, 2012, she sold another 25 shares for $150. What is her recognized gain or loss? Answer: 2. For the year ended December 31, Year 6, Taylor Corp. had a net operating loss of $200,000. Taxable income for the earlier years of corporate existence, computed without reference to the net operating loss, was as follows:TAXABLE INCOME:Year 1………$5,000Year 2………$10,000Year 3………$20,000Year 4………$30,000Year 5………$40,000What amount of net operating loss will be available to Taylor for the year ended December 31, Year 7? 3- Smith has an adjusted gross income (AGI) of $120,000 without taking into consideration $40,000 of losses from rental real estate activities. Smith actively participates in the rental real estate activities.What amount of the rental losses may Smith deduct in determining
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