CORPORATIONS: ORGANIZATION AND CAPITAL STRUCTURE
SOLUTIONS TO PROBLEM MATERIALS
Compare 351 and 1031 in terms of
justification and effect
Possible gain and/or
CHAPTER 2-CORPORATIONS: INTRODUCTION AND
1. Tomas owns a sole proprietorship, and Lucy is the sole shareholder of a C corporation. In the current year
both businesses make a net profit of $60,000. Neither business distributes an
27. Any distribution of cash or property by a corporation that does not exceed the balance of
AAA with respect to S stock during a post-termination transition period of approximately one
year is applied against and reduces the basis of the S stock.
54. Which of the following is a requirement to be an S corporation?
A. be a domestic or foreign corporation
B. have only one class of stock
C. have fewer than 75 shareholders
D. have at least one corporate shareholder
E. None of the above.
Corporate Liquidating Distributions
C:6-1 A complete liquidation is defined by Reg. Sec. 1.332-2(c) as one or a series of distributions
made by a liquidating corporation that completely cancels or redeems all of its stock
A partnership will take a carryover basis in an asset it acquires
The partnership acquires the asset from a partner as a contribution to
partnership capital under 721(a).
On January 1 of the current year, Sarah and Bart form an equal
Chapter 15 Test Bank
PARTNERSHIPS FORMATION, OPERATIONS, AND CHANGES
IN OWNERSHIP INTERESTS
Multiple Choice Questions
Under the Uniform Partnership Act, loans made by a partner to
the partnership are treated as
a. advances to the partnership for wh
1. S corporations are treated as partnerships under state property laws.
SCPE.HRMY.15.LO: 22-01 - LO: 22-01
United States - BUSPORG: Analytic