Tax Paper
Week 1 : Week 1 - Quiz
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1. Henry transfers property with an adjusted basis of $90,000 and a FMV of $100,000 to a newly-formed corporation in a Sec. 351 exchange. Henry receives stock with a FMV of $80,000 and a short-term note with a $20,000 FMV. Henry's recognized gain is (Points : 2) | $0. $5,000. $10,000. $20,000.
c) Realized gain is recognized to the extent of boot received. page 2-17 | 2. Jeremy transfers Sec. 351 property acquired three years earlier having a $100,000 basis and a $160,000 FMV to Jeneva Corporation. Jeremy receives all 200 shares of Jeneva stock, having a $140,000 FMV, and a $20,000 90-day Jeneva note. What is Jeremy’s recognized gain? (Points : 2) | $0 $60,000 $20,000 $160,000
c) recognized gain is the lesser of the realized gain or the FMV of the note (boot property), page 2-18FMV of stock received $140,000 Plus: FMV of 90-day note 20,000 Amount realized $160,000 Minus: adjusted basis of property transferred 100,000) Realized gain $ 60,000 | 3. Ralph transfers property with an adjusted basis of $65,000 and a FMV of $70,000 to Lake Corporation in a Sec. 351 transaction. Ralph receives stock worth $60,000 and a short-term note having a $10,000 FMV. Ralph's basis in the stock is (Points : 2) | $75,000 $70,000 $65,000 $60,000d) Page 2-32, 2-33 | 4. Beth transfers an asset having a FMV of $200,000 and an adjusted basis of $150,000 to ABC Corporation in a Sec. 351 transaction. Beth receives in exchange ABC common stock having a FMV of $175,000 and Zeus Corporation common stock (a capital asset) having a FMV of $25,000 and a basis of $10,000 to ABC Corporation. ABC Corporation must recognize (Points : 2) | no gain. $15,000 capital gain. $25,000 capital gain. $50,000 capital gain.b) page 2-20 | 5. Mario and
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Top of Form Time Remaining: | |
1. Henry transfers property with an adjusted basis of $90,000 and a FMV of $100,000 to a newly-formed corporation in a Sec. 351 exchange. Henry receives stock with a FMV of $80,000 and a short-term note with a $20,000 FMV. Henry's recognized gain is (Points : 2) | $0. $5,000. $10,000. $20,000.
c) Realized gain is recognized to the extent of boot received. page 2-17 | 2. Jeremy transfers Sec. 351 property acquired three years earlier having a $100,000 basis and a $160,000 FMV to Jeneva Corporation. Jeremy receives all 200 shares of Jeneva stock, having a $140,000 FMV, and a $20,000 90-day Jeneva note. What is Jeremy’s recognized gain? (Points : 2) | $0 $60,000 $20,000 $160,000
c) recognized gain is the lesser of the realized gain or the FMV of the note (boot property), page 2-18FMV of stock received $140,000 Plus: FMV of 90-day note 20,000 Amount realized $160,000 Minus: adjusted basis of property transferred 100,000) Realized gain $ 60,000 | 3. Ralph transfers property with an adjusted basis of $65,000 and a FMV of $70,000 to Lake Corporation in a Sec. 351 transaction. Ralph receives stock worth $60,000 and a short-term note having a $10,000 FMV. Ralph's basis in the stock is (Points : 2) | $75,000 $70,000 $65,000 $60,000d) Page 2-32, 2-33 | 4. Beth transfers an asset having a FMV of $200,000 and an adjusted basis of $150,000 to ABC Corporation in a Sec. 351 transaction. Beth receives in exchange ABC common stock having a FMV of $175,000 and Zeus Corporation common stock (a capital asset) having a FMV of $25,000 and a basis of $10,000 to ABC Corporation. ABC Corporation must recognize (Points : 2) | no gain. $15,000 capital gain. $25,000 capital gain. $50,000 capital gain.b) page 2-20 | 5. Mario and