Assume Ivan owns 60% of Rus and Catherine (also an individual and unrelated to Ivan) owns the other 40%. Rusâs total assets are $300, consisting of cash of $180 and a piece of real estate acquired from an unrelated party worth $120. The adjusted basis in the property is $140 (so if the property were sold there would be a $20 loss). In liquidation Catherine gets the real estate (worth $120) and Ivan gets $180 cash (remember Ivan owns 60% of the stock so he gets assets worth $180 which is worth 60% of the total assets of $300). Note these questions all ask about the distributing corporation Rus not the shareholders.
a) Does Rus have taxable gain or loss on the distribution to Catherine? Explain.
b) Does the answer from part a change if the piece of property had been acquired for a valid business reason in a section 351 exchange 4 years ago?
c) Suppose the property was acquired 10 years ago and that Catherine gets 120 in cash and Ivan gets 60 cash and the real estate. What are tax consequences to Rus on the distribution to Ivan?
d) Ivan gets cash of $108 (thatâs 60% of the $180 in cash) and a 60% tenancy in common in the land (60% times the 120 value of the land is 72, so Ivan gets $108 in cash and $72 in land for $180 in total). Catherine gets a 40% tenancy in common of the land and cash of $72. The land was bought ten years ago from a third party. What are the tax consequences to Rus on the distributions?
Identify each of the following structures as haploid or diploid a) Sporophyte - b) Spore - c) Gametophyte - d) Zygote -Jul 16 2021
What are the advantages and disadvantages of that pricing strategy Levels of Pricing?As an example of Level Pricing, Xfinity offers 3 pricing option $49.99, $69.99, $79.99Aug 21 2020
The energy required to melt a solid into a liquid is called?Jun 19 2021
There is a vast number of hog farmers in Canada The Industry should be a good approximation to a perfectly competitive market The demand for processed pork in Canada is...Mar 17 2020
Insert commas, semicolons, and colons to punctuate the following sentences correctly. In the space provided, write the number of punctuation marks that you inserted. Writ...Jul 14 2021
Suppose that you have just opened a new Ford sales showroom and repair shop. Which of your employees would be paid wages, which would receive salaries, and which would re...Jun 02 2020
She has negotiated a sales price of $24,185 and she has a $4,000 down payment. She is eligible for the full $750 cash rebate. Her bank has pre-approved her for a 36-month...Apr 17 2020
A recent study by the University of Pittsburg showed that the average number of airplanes flying over downtown Pittsburg is four per hour. Assume the passing of these air...Apr 17 2020
A profit-maximizing firm in a competitive market is currently producing 200 units of output. It has average revenue of $9 and average total cost of $7. It follows that th...Jun 01 2018
Draw a condensed structural formula that corresponds to each of the following carboxylic acids.(a) 2-Ethylbutanoic acid(b) 2,5-Dimethylhexanoic acid(c) Methylpropanoic ac...Jul 23 2021