Taxes 2 Quiz 1
1. In a section 351 transaction, apply the general rule regarding liabilities for the following property transfers (2
SH Stock basis
Corp prop. Basi
Taxes 2 QUIZ 3
Vandelay Industries, Inc. has taxable income, ignoring dividend income, of $100,000. In addition, it received the
following dividends from eligible domestic corporations:
$10,000 from a 1%-owned corporation
$20,000 from a 30%-owned corpo
A and B form an equal partnership. A contributes $30,000 cash and B contributes land held for investment
(AB $8,000, FMV $52,000, encumbered by mortgage of $22,000).
As basis in his partnership interest_
Gain recognized by B_
1. A, B and C are equal partners. On 12/31/X1, when the cash basis (tax basis) balance sheet is as follows, A sells
his interest to E for $15,000 cash and Es assumption of As liabilities.
Land (held for i
Taxes 2 QUIZ 4
1. Seventies Corp. has E&P as follows:
Accumulated E&P deficit $150
Current E&P $100
Fes, the sole shareholder, has a basis in his stock of $20. The corporation distributes to Fes $125 in cash. Describe the
treatment by Fes.
2. Corp has E&P
TAXES 2Quiz 2
In a Sec. 351 transfer, Arnold Ziffel transferred land, A.B. $40, FMV $60, encumbered by a liability of $22, to a
new corporation. He received stock, FMV $38, and the corporation assumed the liability. Apply the general rule
1. Raj is a 40% shareholder in an S corp. His stock basis is $10 and he loaned the corporation $20. The corporation
also borrowed $90 from a bank. The corporation then has a loss for the year of $200.
Raj can deduct_ (The deduction is for AGI)