3-1 High Corporation incorporates on May 1 and
begins business on May 10 of the current year.
What alternative tax years can High elect to
report its initial years income?
High Corporation has a few possibilities to use as its tax year. First High Corpora
C:95An existing partner wants to contribute property
having a basis less than its FMV for an additional
interest in a partnership.
a. Should he contribute the property to the partnership?
He could contribute the property to the partnership tax-free; howev
6-5 Compare the tax consequences to the shareholder
and the distributing corporation of the following
three kinds of corporate distributions: ordinary
dividends, stock redemptions, and complete
Ordinary dividends: The shareholder treats ordi
C:8-69 Angela owns all the stock of A, B, and P Corporations. P has owned all the stock of
S1 Corporation for six years. The P-S1 affiliated group has filed a consolidated tax return in
each of these six years using the calendar year as its tax year. On J
Current E&P Computation. Water Corporation reports $500,000 of taxable income for
the current year. The following additional information is available:
For the current year, Water reports an $80,000 long-term capital loss and no capital
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Gain on sale of stock
Key-person life insurance proceeds
Cost of goods sold
Salaries and wages