The richards corporation has a tax year ending june

71. The Richards Corporation has a tax year ending June 30. The corporation wishes to elect S
Corporation status. In order to have the S election effective for the 2012 tax year beginning July
1, 2011, before which of the following dates must Form 2553 be filed with the proper IRS
Service Center?
72. If a business asset is sold but the seller agrees to finance the sale over five years, the seller
must______
from the sale
73. In 2011, Panda Corp. has passive losses of $250,000 from a rental activity. Its active business
income is $150,000 and its portfolio income is $50,000. What is Panda Corp.'s 2011 taxable
income if a) Panda is a closely held corporation and b) Panda is a personal service corporation?
a) $50,000 loss, b) $200,000
C. a) $50,000, b) $50,000
D. a) $200,000, b) $50,000

74. George purchased a business for a lump sum price of $1,400,000. The values of the assets on
the seller's books were as follows:
Book Value
FMV
Cash $200,000 $200,000
Land $150,000 $150,000
Building $300,000 $450,000
Equipment $250,000 $300,000
Covenant Not to Compete $0 $100,000
George did not assume any loans. What is his basis for goodwill and the equipment?
Goodwill / Equipment
75. An irrevocable trust was established for the medical care of Joan's mother. During the tax
year, the trust received interest and dividend income in the amount of $20,000. Per the trust
provisions, the trustee paid $10,000 of medical expenses directly to the care provider. It also paid
$1,000 of investment interest expense. Assuming that this is a complex trust, determine the trusts'
distributable net income for the year.
76. In 2011 your construction company bought and placed in service a dump truck that cost
$55,000 and a chain saw that cost $2,000. Section 179 expensing was elected and applied $2,000
to the chain saw and $17,000 to the dump truck for a total of $19,000. What is the depreciable
basis in each item for 2011?
77. Chandler Corporation has 500 shares of common stock outstanding. Scott owns 150 shares,
Scott's mother, Mabel, owns 50 shares, his brother, Ted, owns 40 shares, and Scott's son, Fred,
owns 60 shares. Borus Corporation owns 50 shares of Chandler Corporation and Scott owns 70%
of the stock in Borus Corporation. How many shares does Scott own in Chandler Corporation,

applying the rules of ownership attribution, for purposes of determining whether a loss on the
sale or trade of property between related parties is deductible?