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Which of the following is not a condition that permits a stock
redemption to be treated as a sale?
Question 19
Carolyn transfers property with an adjusted basis of $50,000
and an FMV of $60,000 in exchange for Prime Corporation
stock in a Sec. 351 transaction. Carolyn's basis in the stock
is
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