Osprey Corporation stock is owned by Pedro and Pittro, who are unrelated. Pedro and Pittro each...
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Osprey Corporation stock is owned by Pedro and Pittro, who are unrelated. Pedro and Pittro each own 50% of the stock in the corporation. Osprey has the following assets (none of which were acquired in a § 351 or contribution to capital transaction) that are distributed in complete liquidation of the corporation. Adjusted Fair Market Basis Value Cash $585,200 $585,200 Land 351,120 877,800 Equipment 468,160 292,600 Assume that Osprey Corporation distributes the land to Pedro and the cash and equipment to Pittro. a. Determine Osprey's recognized gain or loss on the distribution of land. Osprey recognizes a gain of $ on the distribution of the land. b. Determine Osprey's recognized gain or loss on the distribution of the equipment. Osprey realizes a loss of $ on the equipment, of which $ is recognized. Sunset Corporation, with E & P of $320,000, makes a cash distribution of $96,000 to a shareholder. The shareholder's basis in the Sunset stock involved is $38,400. a. Determine the tax consequences to the shareholder if the distribution is a nonqualified stock redemption. The shareholder has dividend income of $ b. Determine the tax consequences to the shareholder if the distribution is a qualifying stock redemption. The shareholder has a capital gain of $ c. Determine the tax consequences to the shareholder if the distribution is pursuant to a complete liquidation of Sunset. The shareholder has a capital gain of $ Osprey Corporation stock is owned by Pedro and Pittro, who are unrelated. Pedro and Pittro each own 50% of the stock in the corporation. Osprey has the following assets (none of which were acquired in a § 351 or contribution to capital transaction) that are distributed in complete liquidation of the corporation. Adjusted Fair Market Basis Value Cash $585,200 $585,200 Land 351,120 877,800 Equipment 468,160 292,600 Assume that Osprey Corporation distributes the land to Pedro and the cash and equipment to Pittro. a. Determine Osprey's recognized gain or loss on the distribution of land. Osprey recognizes a gain of $ on the distribution of the land. b. Determine Osprey's recognized gain or loss on the distribution of the equipment. Osprey realizes a loss of $ on the equipment, of which $ is recognized. Sunset Corporation, with E & P of $320,000, makes a cash distribution of $96,000 to a shareholder. The shareholder's basis in the Sunset stock involved is $38,400. a. Determine the tax consequences to the shareholder if the distribution is a nonqualified stock redemption. The shareholder has dividend income of $ b. Determine the tax consequences to the shareholder if the distribution is a qualifying stock redemption. The shareholder has a capital gain of $ c. Determine the tax consequences to the shareholder if the distribution is pursuant to a complete liquidation of Sunset. The shareholder has a capital gain of $
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ans 1 a osprey recignizes a gain of 526680 on the distribution of land On the distribution of the la... View the full answer
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
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