Twoyearslater, thecorporationsoldthemachineryfor $ 4,000 andthebuildingfor $ 110,000. Themachineryhad accumulateddepreciationof $ 2,000, andthebuildinghadaccumulateddepr eciationof $ 1,000. Whatisthebuilt-in gainrecognizedon thesale? Which ofthefollowingitemsmustbe separatelystated on Form1120S, U. S. IncomeTaxReturnforan S Corporation, ScheduleK-1? Forwhichofthefollowingentitiesistheowner ' sbasisincreasedbytheowner ' sshareofprofitsanddecreasedbythe owner ' sshareoflosses, butisnotaffectedbytheentity ' sbankloanincreaseso rdecreases? Frankisa1 / 3shareholderin an Scorporation. Atthebeginningoftheyear, Frank ' sbasisin hisScorporationstock was $ 10,000. Frank ' sshareoftheScorporationitemsofincomeincluded $ 35, 000ofincomefromoperations,$ 1,000 ofcharitablecontributions, and $ 1,000 ofcapitalgains. Duringtheyear, Frankalsocontributed $ 15,000ofadditiona l capitalandreceiveda $ 3,000 distributionfromtheScorporation. WhatisFrank ' sbasisattheendofthetaxy ear? ================================================== ACCT 553 Week 7 Homework
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Twoyearslater, thecorporationsoldthemachineryfor $ 4,000 andthebuildingfor $ 110,000. Themachineryhad accumulateddepreciationof $ 2,000, andthebuildinghadaccumulateddepr eciationof $ 1,000. Whatisthebuilt-in gainrecognizedon thesale? Which ofthefollowingitemsmustbe separatelystated on Form1120S, U. S. IncomeTaxReturnforan S Corporation, ScheduleK-1? Forwhichofthefollowingentitiesistheowner ' sbasisincreasedbytheowner ' sshareofprofitsanddecreasedbythe owner ' sshareoflosses, butisnotaffectedbytheentity ' sbankloanincreaseso rdecreases? Frankisa1 / 3shareholderin an Scorporation. Atthebeginningoftheyear, Frank ' sbasisin hisScorporationstock was $ 10,000. Frank ' sshareoftheScorporationitemsofincomeincluded $ 35, 000ofincomefromoperations,$ 1,000 ofcharitablecontributions, and $ 1,000 ofcapitalgains. Duringtheyear, Frankalsocontributed $ 15,000ofadditiona l capitalandreceiveda $ 3,000 distributionfromtheScorporation. WhatisFrank ' sbasisattheendofthetaxy ear? ================================================== ACCT 553 Week 7 Homework
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Chapters 10-11-12 1. Please explain the distinction between a " realized " gain and a " recognized " gain.( 5 pts) 2. Are there any limits to the deductibility of losses on sales and exchanges between related parties? What code section defines this limitation?( 5 pts.)