Question1 Paula receives a liquidating
distribution from Pell as part of a redemption of all of...
Question1 Paula receives a liquidating
distribution from Pell as part of a redemption of all of its stock.
Paula’s basis for her Pell stock is $10,000. In exchange for her
stock, Paula receives property with an $8,000 basis and a $15,000
fair market value that is subject to a $2,000 mortgage, and also
receives cash of $5,000. How much is Paula’s recognized gain? A.
$12,000. B. $10,000. C. $8,000. D. $0.
Question 2 Paula receives a liquidating
distribution from Pell...
A nonresident alien, married, died on September 2018. He left
the following:
Conjugal properties, Philippines, 5,000,000...
A nonresident alien, married, died on September 2018. He left
the following:
Conjugal properties, Philippines, 5,000,000
Exclusive properties, Philippines, 2,000,000
Conjugal properties, USA, 10,000,000
Exclusive properties, USA, 5,000,000
The following deductions were claimed:
Actual funeral expenses, 1,250,000
Judicial expenses, 800,000
Claims against the estate, 1,725,000
Transfer for Public Use, 200,000
Medical expense, 875,000
Included in the Philippines gross estate (conjugal) were the
following:
Domestic shares, 500,000
Share in a partnership, 1,000,000
Other tangible personal properties, 3,500,000
The Philippine exclusive properties...
ATHI AND DARRIN LOVETTE CASE:
Kathi and Darrin Lovette Background
Kathi and Darrin Lovette, both age...
ATHI AND DARRIN LOVETTE CASE:
Kathi and Darrin Lovette Background
Kathi and Darrin Lovette, both age 63, have been married for 40
years, are both in good health, and they are citizens and residents
of Louisiana. They expect to work until age 66 to 70. Kathi and
Darrin live in a community property state. They have the following
children and grandchildren:
Children
Age
Grandchildren
Elizabeth
Age 40
4 children (ages 15, 14, 13 & 12)
James
Age 35
3 children...
Shawn and Amy were college sweethearts and had been married for
20 wonderful years. They lived...
Shawn and Amy were college sweethearts and had been married for
20 wonderful years. They lived in Denver, Colorado. Shawn was one
of three partners with the OMG! Engineering firm. Unfortunately,
Shawn, a serious mountain climber, ran out of oxygen as he tried to
reach the top of Mount Everest. Amy was devastated when she learned
of his death and had no clue what to do next. Her friend was
concerned when Amy told her they never got around to...
STEPHENSON REAL ESTATE RECAPITALIZATION
Market value balance sheet before the
land purchase is:
Market value...
STEPHENSON REAL ESTATE RECAPITALIZATION
Market value balance sheet before the
land purchase is:
Market value balance sheet
Assets
$533,500,000
Equity
$533,500,000
Total assets
$533,500,000
Debt & Equity
$533,500,000
Market value balance sheet after
purchase of land:
Note, to calculate the NPV of the
project, you must perform a calculation to determine the earnings
they will receive from this purchase
Market value balance sheet
Old assets
$533,500,000
NPV of project
enter value
Equity
enter value
Total assets
Sum total...
CASE FACTS
Mike and Jane Cool are married and file a joint Federal income
tax return....
CASE FACTS
Mike and Jane Cool are married and file a joint Federal income
tax return. Both are under 50 years old. Mike’s social security
number is 999-88-7777. Jane’s is 888-77-6666. They live at 234
Freedom Boulevard, Cedar City, UT 84720. Neither is interested in
contributing to the Presidential Election Campaign.
Mike is a city engineer. His W-2 showed wages of $85,000,
Federal income tax withheld of $7,500 and state income tax withheld
of $3,000. Mike does not participate in...
Question 1 (1 point)
Ray died this year at age 73, and his wife, Mary, age...
Question 1 (1 point)
Ray died this year at age 73, and his wife, Mary, age 55, is the
designated beneficiary on his Roth IRA. Ray's Roth IRA was
established 3 years ago. Which of the following statements is(are)
CORRECT?
I Ray was not subject to required minimum distributions from his
Roth IRA during his lifetime.
II If Mary chooses to distribute the entire balance of the Roth IRA
this year, the distribution may be subject to both regular income...
Note: This problem is for the 2018 tax year.
David R. and Ella M. Cole (ages...
Note: This problem is for the 2018 tax year.
David R. and Ella M. Cole (ages 39 and 38, respectively) are
husband and wife who live at 1820 Elk Avenue, Denver, CO 80202.
David is a self-employed consultant specializing in retail
management, and Ella is a dental hygienist for a chain of dental
clinics.
David earned consulting fees of $145,000 in 2018. He maintains
his own office and pays for all business expenses. The Coles are
adequately covered by the...