Thomas and Miles are equal partners in aâ partnership, whichuses the calendar year as its tax year. On Septemberâ 1, thisâyear, Katie contributedâ $60,000 cash for aâ one-third interest inthe partnership. The partnership reports aâ $24,000 ordinary lossfor the tax year ending on December 31 of this year. The lossallocation to Katieâ (new partner) is
A. â$0.
B. â$2,667.
C. â$4,000.
D.â$8,000.
A corporation has the following capital gains and losses duringthe currentâ year: âLTCG: â$25,000 âLTCL: â15,000 âSTCG: 8,000âSTCL: 4,000 The tax result to the corporation is
A. $10,000 NLTCG included in gross income and taxed at ordinaryârates; $4,000 NSTCG included in gross income and taxed at reducedrates.
B. â$10,000 NLTCG is included in gross income and taxed at reducedârates; andâ $4,000 NSTCG included in gross income and taxed atordinary rates.
C. $14,000 included in gross income and taxed at reducedrates.
D.$14,000 included in gross income and taxed at ordinary rates.
Stephanie owns aâ 25% interest in a qualifying S corporation.âStephanie's basis in the stock wasâ $40,000 at the end of the yearafter adjustments are made for capital contributions anddistributionsâ (but not operatingâ results). Stephanie also loanedthe S corporationâ $10,000 this year. The S corporation incurred aâ$240,000 ordinary loss this year. Assume that next year the Sâcorporation's ordinary income isâ $160,000. â Stephanie's basis inher stock at the end of next year is A.$10,000.
B.$20,000.
C. $30,000.
D. â$40,000.
Tara transfers land with aâ $690,000 adjusted basis and aâ$700,000 FMV to a corporation in a Sec. 351 transfer. Immediatelyafter theâ transfer, Tara ownsâ 100% of the corporationlongdashâstock with a FMV ofâ $615,000. Inâ addition, $85,000 ofliabilities are assumed by the corporation with respect to thetransfer. No other property is transferred.â Tara's recognized gainon the transfer is
A. $15,000.
B. â$0.
C. $5,000.
D. $10,000.
Jenkins Corporation has the following income and expense itemsduring the currentâ year: Net loss from operationsâ (beforedividendâ income) â($ 25,000) Dividends fromâ 25% ownedcorporations â150,000 The allowedâ dividends-received deductionis
A. $125,000.
B. $100,000.
C. â$150,000.
D. $120,000.
Thomas and Miles are equal partners in aâ partnership, whichuses the calendar year as its tax year. On Septemberâ 1, thisâyear, Katie contributedâ $60,000 cash for aâ one-third interest inthe partnership. The partnership reports aâ $24,000 ordinary lossfor the tax year ending on December 31 of this year. The lossallocation to Katieâ (new partner) is
A. â$0.
B. â$2,667.
C. â$4,000.
D.â$8,000.
A corporation has the following capital gains and losses duringthe currentâ year: âLTCG: â$25,000 âLTCL: â15,000 âSTCG: 8,000âSTCL: 4,000 The tax result to the corporation is
A. $10,000 NLTCG included in gross income and taxed at ordinaryârates; $4,000 NSTCG included in gross income and taxed at reducedrates.
B. â$10,000 NLTCG is included in gross income and taxed at reducedârates; andâ $4,000 NSTCG included in gross income and taxed atordinary rates.
C. $14,000 included in gross income and taxed at reducedrates.
D.$14,000 included in gross income and taxed at ordinary rates.
Stephanie owns aâ 25% interest in a qualifying S corporation.âStephanie's basis in the stock wasâ $40,000 at the end of the yearafter adjustments are made for capital contributions anddistributionsâ (but not operatingâ results). Stephanie also loanedthe S corporationâ $10,000 this year. The S corporation incurred aâ$240,000 ordinary loss this year. Assume that next year the Sâcorporation's ordinary income isâ $160,000. â Stephanie's basis inher stock at the end of next year is A.$10,000.
B.$20,000.
C. $30,000.
D. â$40,000.
Tara transfers land with aâ $690,000 adjusted basis and aâ$700,000 FMV to a corporation in a Sec. 351 transfer. Immediatelyafter theâ transfer, Tara ownsâ 100% of the corporationlongdashâstock with a FMV ofâ $615,000. Inâ addition, $85,000 ofliabilities are assumed by the corporation with respect to thetransfer. No other property is transferred.â Tara's recognized gainon the transfer is
A. $15,000.
B. â$0.
C. $5,000.
D. $10,000.
Jenkins Corporation has the following income and expense itemsduring the currentâ year: Net loss from operationsâ (beforedividendâ income) â($ 25,000) Dividends fromâ 25% ownedcorporations â150,000 The allowedâ dividends-received deductionis
A. $125,000.
B. $100,000.
C. â$150,000.
D. $120,000.
