dividends were received by the partnership.
Acquired 100 shares of Ace Corporation common stock for $30 a share
on January 12, 2014. She sold the stock on December 19 for $55 a
share.
Paid $1,300 for prescription medicines and $1,875 in physician and
hospital bills. Medical insurance premiums were paid by her employer.
Paid real property taxes of $1,675 on her personal residence and
interest on her home mortgage was $4,285, and interest paid to credit
card companies
tot aled $360.
Contributed $25 each week to her church and $15 each week to United
Way.
Paid $1,500 in estimated federal income taxes throughout the year.
Artifact Three: Tax Memo II Corporation Issue
Clifford Company has encountered the following issue:
The company would like to make a property distribution (dividend) of
the three machines that it uses in its business. It no longer needs two of
these machines.
All three machines have a fair market value of $20,000 each. The basis
of each machine is as follows: Machine A, $27,000; Machine B,
$20,000; and Machine C,
$12,000. The corporation has asked you for advice. What do you
recommend?