Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet: Adjusted Appreciation THV Tax Basis Depreciation Cash $ 399,000 $ 399,000 Building 84,000 27,250 56,750 Land 315,000 405,000 (90,000) Total $ 798,000 $ 131,250 $ (33,250) Under the terms of the agreement, Tiffany will receive the $399,000 cash in exchange for her 50 percent interest in ROF Tiffany's tax basis in her ROF stock is $59,000. Carlos will receive the building and land in exchange for his 50 percent Interest in ROF. His tax basis in the ROF stock is $121,000. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax pold by the corporation on gain recognized as a result of the liquidation (Negative amounts should be indicated by a minus sign.) a. What amount of gain or loss does ROF recognize in the complete liquidation? Gain or loss recognized Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet: Adjusted Appreciation FMV Tax Basis (Depreciation) Cash $ 399,000 $ 399,000 Building 84,000 27,250 56,750 Land 315,000 405,000 (90,000) Total $ 798,000 $ $31,250 $ 133,250) Under the terms of the agreement, Tiffany will receive the $399,000 cash in exchange for her 50 percent interest in ROF. Tiffany's tax basis in her ROF stock is $59,000Carlos will receive the building and land in exchange for his 50 percent Interest in ROF. His tax basis in the ROF stock is $121,000. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation, (Negative amounts should be indicated by a minus sign.) b. What amount of gain or loss does Tiffany recognize in the complete liquidation? Gain or loss recognized Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet: Appreciation (Depreciation Cash Tuilding Land Total THY $ 399,000 84,000 315,000 $ 790,000 Adjusted Tax Basis $ 399,000 27,250 405,000 $ 891,250 56,750 (90.000) $ (33,250) Under the terms of the agreement, Tiffany will receive the $399,000 cash in exchange for her 50 percent interest in ROF Tiffany's tax basis in her ROF stock is $59,000. Carlos will receive the building and land in exchange for his 50 percent interest in ROF. His tax basis in the ROF stock is $121,000. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indicated by a minus sign.) c. What amount of gain or loss does Carlos recognize in the complete liquidation? Gan or loss recognized Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (RO). After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet: Appreciation Depreciation) Cash Building Land Total IMV $ 399,000 84,000 315.000 $ 798,000 Adjusted Tax Banin $ 399,000 27,250 405.000 $ 831,250 56,750 (90,000) $ (33,250) Under the terms of the agreement, Tiffany will receive the $399,000 cash in exchange for her 50 percent interest in ROF. Tiffany's tax basis in her ROF stock is $59,000. Carlos will receive the building and land in exchange for his 50 percent interest in ROF. His tax basis in the ROF stock is $121,000. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation (Negative amounts should be indicated by a minus sign.) d. What is Carlos's adjusted tax basis in the building and land after the complete liquidation? Building Land Tax basis Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet: Adjusted Appreciation THV Tax hani (Depreciation Canh $ 399,000 $ 399,000 Building 84,000 27,250 56.750 Land 315,000 405,000 90,000) Total 5 798,000 $631,250 $ 33,250) Under the terms of the agreement, Tiffany will receive the $399,000 cash in exchange for her 50 percent interest in ROF. Tiffany's tax basis in her ROF stock is $59,000. Carlos will receive the building and land in exchange for his 50 percent interest in ROF. His tax basis in the ROF stock is $121,000. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation (Negative amounts should be indicated by a minus sign.) Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $319,200 in the liquidation and Carlos will receive the land and building plus $79.800. e. What amount of gain or loss does ROF recognize in the complete liquidation? Gain or loss recognized Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet Appreciation Depreciation) Cash Building Land THV $ 399,000 84,000 315,000 $ 790,000 Adjusted Tax Manis $ 399,000 27,250 405,000 $631,250 56,750 90,000) $ (33,250) Total Under the terms of the agreement, Tiffany will receive the $399,000 cash in exchange for her 50 percent interest in ROF. Tiffany's tax basis in her ROF stock is $59,000. Carlos will receive the building and land in exchange for his 50 percent interest in ROF. His tax basis in the ROF stock is $121,000. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation (Negative amounts should be indicated by a minus sign.) Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $319,200 in the liquidation and Carlos will receive the land and building plus $79,800. f. What amount of gain or loss does Tiffany recognize in the complete liquidation? Gain or loss recognized Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet: Canh muilding Land Total THV $ 399,000 84.000 315.000 $ 798,000 Adjusted Tax Basis $ 399,000 27.250 405,000 $ 831,250 Appreciation Depreciation) 56,750 190.000) $ 133,250) Under the terms of the agreement, Tiffany will receive the $399,000 cash in exchange for her 50 percent interest in ROF. Tiffany's tax basis in her ROF stock is $59,000. Carlos will receive the building and land in exchange for his 50 percent interest in ROF. His tax basis in the ROF stock is $121,000. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation (Negative amounts should be indicated by a minus sign.) ces Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $319,200 in the liquidation and Carlos will receive the land and building plus $79,800 9. What amount of gain or loss does Carlos recognize in the complete liquidation? Gain or loss recognized Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). Alter liquidsung il remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet: TV Appreciation (Depreciation) Cash Building Land Total $ 399,000 84,000 315,000 $ 798,000 Adjusted Tax Basis $ 399,000 27,250 405,000 $ 831,250 56,750 (90,000) $(33,250) Under the terms of the agreement, Tiffany will receive the $399,000 cash in exchange for her 50 percent interest in ROF Tiffany's tax basis in her ROF stock is $59,000. Carlos will receive the building and land in exchange for his 50 percent interest in ROF His tax basis in the ROF stock is $121,000. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indicated by a minus sign.) Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $319,200 in the liquidation and Carlos will receive the land and building plus $79,800 h. What is Carlos's adjusted tax basis in the bullding and land after the complete liquidation? Building Land Tax basis