Volunteer Corporation reported taxable income of $500,000 from operations this year. During the year, the company made a distribution of land to its sole shareholder, Rocky Topp

Spieth Corporation reported taxable income of $500,000 from operations this year. During the year, the company...

Spieth Corporation reported taxable income of $500,000 from operations this year. During the year, the company made a distribution of land to its sole shareholder, Jordan Day. The land’s fair market value was $75,000 and its tax and E&P basis to Spieth was $125,000. Jordan assumed a mortgage attached to the land of $15,000. The company had accumulated E&P of $750,000 at the beginning of the year. c. Compute Spieth’s accumulated E&P at the beginning of next year.

Beaver Corporation reported taxable income of $500,000 from operations this year. During the year, the company...

Beaver Corporation reported taxable income of $500,000 from operations this year. During the year, the company made a distribution of land to its sole shareholder, Eugenia VanDam. The land’s fair market value was $20,000, and its tax and E&P basis to Beaver was $50,000. Eugenia assumed a mortgage on the land of $25,000. Beaver Corporation had accumulated E&P of $1,500,000. (Leave no answer blank. Enter zero if applicable.) a) Compute Beaver's taxable income and federal income tax Taxable Income= ?...

Illini Corporation reported taxable income of $500,000 from operations for this year. During the year, the...

Illini Corporation reported taxable income of $500,000 from operations for this year. During the year, the company made a distribution of an automobile to its sole shareholder, Carly Urbana. The auto’s fair market value was $30,000, and its tax basis to Illini was $0. The auto’s E&P basis was $15,000. Illini had accumulated E&P of $1,500,000. a. Compute Illini’s taxable income and federal income tax. Taxable Income= ? Federal Income tax= ? b. Compute Illini's current E&P. Current E&P= ?...

Illini corporation reported taxable income of $500,000 from operations for this year. During the year, the...

Illini corporation reported taxable income of $500,000 from operations for this year. During the year, the company made a distribution of an automobile to its sole shareholder, Carly Urbana. The auto’s fair market value was $30,000, and its tax basis to Illini was $0. The auto’s E&P basis was $15,000. Illini had accumulated E&P of $1,500,000. a) Compute Illini's taxable income and federal income tax Taxable Income= ? Federal Income Tax= ? b) Compute Illini's current E&P Current E&P= ?...

1. A corporation sells property (basis of $500,000) to its sole shareholder for $450,000, the fair...

1. A corporation sells property (basis of $500,000) to its sole shareholder for $450,000, the fair market value of the property. With respect to the sale: Does the corporation have a tax loss of $50,000? Why or why not? 2.MPC Corporation makes a property distribution on 12/31/16 to its sole shareholder, Jon. The property distributed is a house (fair market value of $500,000; basis of $300,000) that is subject to a $50,000 mortgage that Jon assumes. Before considering the consequences...

During the year, Chelsie, the sole shareholder of a calendar year S corporation, received a distribution...

During the year, Chelsie, the sole shareholder of a calendar year S corporation, received a distribution from the S-corp of $33,000 in cash. At the end of last year, her stock basis was $9,000. The corporation earned $11,000 ordinary income during the year. The corporation has no accumulated E & P, from prior years, but does have a beginning of the year balance in AAA of $3,000. How is the distribution to Chelsie taxed on her federal income tax return?

On September 30, Marsh Corporation, a calendar year taxpayer, sold a parcel of land (basis of...

On September 30, Marsh Corporation, a calendar year taxpayer, sold a parcel of land (basis of $320,000) for an $800,000 note. The note is payable in four installments, with the first payment due next year. Because Marsh did not elect out of the installment method, none of the $480,000 gain is taxed this year. Marsh Corporation had a $150,000 deficit in accumulated E & P at the beginning of the year. Before considering the effect of the land sale, Marsh...

Tiger Company, a calendar year corporation, reports a deficit in current E&P of negative ($500,000) this...

Tiger Company, a calendar year corporation, reports a deficit in current E&P of negative ($500,000) this year and positive accumulated E&P at the beginning of the year of $300000. Tiger distributed $250000 to its sole shareholder on June 30 of this year. How much of the distribution is treated as a return of capital this year if the shareholder has a $1 million adjusted basis in Tiger stock? Multiple Choice $500000 $50000 $200000 $0

During the current year, Stigma Corporation distributes the assets listed below to its sole shareholder,Jessica. Assume...

During the current year, Stigma Corporation distributes the assets listed below to its sole shareholder,Jessica. Assume that Stigma has an E&P balance exceeding the amount distributed and is subject to a 34% marginal tax rate. Unless stated otherwise, adjusted bases for taxable income and E&P purposes are the same. Requirement For each asset listed, determine the gross income recognized by Jessica,her basis in the asset, the amount of gain or loss recognized by Stigma,and the effect of the distribution on...

35. This year, Sooner Company reports a deficit in current E&P of ($300,000). Its accumulated E&P...

35. This year, Sooner Company reports a deficit in current E&P of ($300,000). Its accumulated E&P at the beginning of the year was $200,000. Sooner distributed $400,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer’s tax basis in his Sooner stock is $75,000. a) How much of the $400,000 distribution is treated as a dividend to Boomer? b) What is Boomer’s tax basis in his Sooner stock after the distribution? c) What is Sooner’s balance...