Application of Section 351
1. Consider whether the following transactions qualify under Section 351:
(a) A and B are unrelated individuals. A forms Newco Inc. on January 2 of the
current year by transferring property with a basis of $10,000 and a value of
MID-TERM EXAMINATION 2014
Not a flow-through entity (pays its own tax) losses/gains not
reported by shareholders
No deduction for dividends paid
Limited Liability/Continuity of Li
Name: _ Class: _ Date: _
Tax 9878 Mid Term Exam Spring 2015
Indicate whether the statement is true or false.
1. Olgas proprietorship earned a net profit of $95,000 during the year and she withdrew $70,000 of this profit.
Olga must repor