Chauvin Oil Corporation operates primarily in the United States and owns an offshore drilling rig with an

Question:

Chauvin Oil operates primarily in the United States and owns an offshore drilling rig with an adjusted basis of $400,000 that it uses near Louisiana. Chauvin exchanges the rig for a new rig with a FMV of $1,000,000, and Chauvin also pays $250,000. Chauvin plans to expand its drilling operations to offshore sites near Finland. What tax issues should the Chauvin Oil consider?
a. What is the realized gain on the exchange?
b. Will the new rig be used in Finland?
c. What is the character of any gain recognized? Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...