Question 20
Tia owns 2,000 shares of Bass Corporation common stock with an $ 80,000 basis . Bass distributes a nontaxable preferred stock dividend . When the preferred stock is distributed , it has an FMV of $ 60,000 and the FMV of the 2,000 common stock shares is $ 180,000 . The basis of the preferred stock is
Question 21
American Corporation acquires the noncash assets of Utech Corporation in exchange for $ 700,000 of its voting stock plus $ 50,000 of cash . Utech Corporation assets are worth $ 750,000 . Utech Corporation does not distribute the stock and cash but instead holds the stock as an investment . Utech will use the American cash along with the cash it retained to start a new business . The transaction can be classified as a
Question 22
Dixie Corporation distributes $ 31,000 to its sole shareholder , Sally . At the time of the distribution , Dixie ' s E & P is $ 25,000 and Sally ' s basis in her Dixie stock is $ 10,000 . Sally ' s basis in her Dixie stock after the distribution is
Question 23
Tomika Corporation has current and accumulated earnings and profits of $ 0 . Tomika distributes $ 10,000 to its sole shareholder , Alana . What are Tomika ' s earnings and profits
Question 24
Which of the following items are tax preference items for purposes of arriving at alternative minimum taxable income ?
Question 25