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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 sale73. 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) $200,000C.a) $50,000, b) $50,000
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 ValueFMVCash$200,000$200,000Land$150,000$150,000Building$300,000$450,000Equipment$250,000$300,000Covenant Not to Compete$0$100,000George did not assume any loans. What is his basis for goodwill and the equipment?Goodwill / Equipment75. 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?
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Corporation, Taxation in the United States, partner