1. In 2022, a corporation earns $65,000 from its business operations and has $10,000 of dividend income. It donates $12,
Posted: Sat May 07, 2022 7:47 pm
1. In 2022, a corporation earns $65,000 from its business
operations and has $10,000 of
dividend income. It donates $12,000 to charity. Show how you
determine taxable
income.
2. Connie contributes a machine (basis $3,000, value $5,000) to
her controlled
corporation in exchange for stock worth $4,200 and $800 in cash.
(a) How much gain
will she recognize? (b) What's her basis in her stock? (c)
What's the corp's basis in the
machine?
3. Carl has a basis of $7,500 in his stock. The corporation has
$1,500 of E&P. Carl
receives a distribution of S10,000. (a) How much dividend income
does he have? (b)
How much capital gain does he have, if any? (c) What's his new
basis in his stock?
operations and has $10,000 of
dividend income. It donates $12,000 to charity. Show how you
determine taxable
income.
2. Connie contributes a machine (basis $3,000, value $5,000) to
her controlled
corporation in exchange for stock worth $4,200 and $800 in cash.
(a) How much gain
will she recognize? (b) What's her basis in her stock? (c)
What's the corp's basis in the
machine?
3. Carl has a basis of $7,500 in his stock. The corporation has
$1,500 of E&P. Carl
receives a distribution of S10,000. (a) How much dividend income
does he have? (b)
How much capital gain does he have, if any? (c) What's his new
basis in his stock?