Running Head: BERKSHIRE HATHAWAY, INC.
Berkshire Hathaway, Inc. SEC Paper
University of Maryland University College
April 13, 2014
BERKSHIRE HATHAWAY, INC,
Apple, Inc. is one of the most quickly rising companies in the
2-27 Compute (1) each transferors recognized gain or income
F has no gain on the cash contributed.
(2) Each transferors basis in the stock
F has a basis in the stock of $20,000.
The corporation, FG has a basis in the cash of $20,000.
The value of
2-2 The rationale for nonrecognition treatment for transfers to a controlled corporation lies in the continuity of
interest principle. When the transferor exchange property for stock in a corporation that the transferor
control, there is only a change in
Some answers are identical in all the situations. F has no gain on the cash contributed and has a basis in the
stock of $20,000. The corporation, FG, has a basis in the cash of $20,000. The value of the services,
$30,000, is taxable as ordinary income by
CHAPTER 1 INCOME TAXATION OF CORPORATIONS
1. The proprietorship uses gross ordinary income as the basis for calculating any
self-employment tax due.
2. In contrast to a regular corporation, an S corporation's pass-through of income
and deductions to i
CHAPTER 1: MULTIPLE CHOICE
INCOME TAXATION OF CORPORATIONS
26. Which of the following is not true?
a. Because all activities of a corporation are considered to be business
activities, a corporation cannot have a nonbusiness bad debt.
CHAPTER 2: Multiple Choice
CORPORATE FORMATION AND CAPITAL STRUCTURE
21. This year D transferred property worth $10,000 (basis $6,000) to a newly
formed corporation in exchange for all of its stock worth $10,000.
a. D realizes a $4,000 gain which is n