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Mark, and John Case
Part I: Discuss the various forms of organization that are available to
Penelope, Mark, and John
Part II: Make your recommendation as to what form of organization you
believe will be best, and be sure to explain the reasoning for your choice.
Part III: Discuss the tax consequences of contributing cash, property,
and/or services to the new entity.
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ACCT 553 Week 6 Homework
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Miyasyke,Inc.,acalendaryearScorporation,hasfiveequalshareholdersatthe
endofthetaxyear.Miyasykehad
$75,000oftaxableincome.Miyasykemadedistributionsto
itsshareholdersof$32,000each,foratotalof$160,000.
Eachshareholder'sbasisin
theScorporationis$100,000atthebeginningofthetaxyear.Whatamountfrom
Miyasykeshould be includedin eachshareholder'sgrossincome?
Asoleproprietorshipincorporatedon
January1andelectedScorporationstatus.Theownercontributedthefollowin
g assetsto theScorporation:
Twoyearslater,thecorporationsoldthemachineryfor$4,000
andthebuildingfor$110,000.Themachineryhad