• Alabama Corporation, an S corporation, liquidates this year by distributing a parcel of land to its sole shareholder, Mark Ingram. The fair market value of the parcel is $67,000, and its tax basis is $42,000. Mark's basis in his stock is $34,000. • ASSUMING THE FMV of the iand is 30,000 rather than 67,000 How much gain must Mark recognize (if any) as a result of the distribution, and what is his basis in the land?

Lucas is a 25% partner in the LCS Partnership. On January 1, LCS distributes $40,000 cash and land with a $32,000 fair value (inside basis $16,000). LCS has no liabilities at the date of the distribution. Lucas' basis in LCS is $32,000. What is the amount and character of Lucas' gain or loss on the liquidating distribution? A) $0 B) $8,000 capital gain C) $24,000 capital gain D) $40,000 capital gain

At the beginning of the year Oak Corporation an s corporation had $50,000 in its accumulated adjusted account(aaa) $30,000 in earnings and profit from prior c corporation years. During the year, oak earned $ 25,000 of ordinary income and paid $100,000 in its distribution to its shareholders. Assume that Ethan owns 25% of Oak Corporation his basis in Oak Corporation stock at the beginning of the year is $15,000 and his share of distribution was $25,000.how much does Ethan recognize this year from these transactions a) 0,b)$6,250c)$7,500d)$20,000

Mario is a 40% partner in the MPC Partnership. On January 1, MPC distributes $32,000 cash and land with a $32,000 fair value (inside basis $16,000). MPC has no liabilities at the date of the distribution. Mario's basis in MPC is $40,000. What is the amount and character of Mario's gain or loss from the liquidating distribution? A) $0 B) $8,000 capital gain C) $24,000 ordinary income D) $24,000 capital gain

• Johanne transferred investment property to S&J Corporation in exchange for 60 percent of the S&J Corporation stock (60 shares valued at $115,000). The property's fair market value was $190,000 and its adjusted basis to Johanne was $60,000. The investment property was subject to a $75,000 mortgage that S&J Corporation assumed on the transfer (not treated as boot). a. Assuming the transfer qualifies under §351, what is the amount and character of the gain Johanne must recognize on the exchange?

An entity has revalued its property and has recognized the increase in the revaluation reserve in its financial statements. The carrying value of the property was GHS8 million, and the revalued amount was GHS10 million. Tax base of the property was GHS6 million. In the country, the tax rate applicable to profits is 35% and the tax rate applicable to profits made on the sale of property is 30%. Where will the tax liability be recognized and at what amount?a.In equity at GHS1.2 million.b.In statement of recognized income and expense at GHS1.4 million.c.In retained earnings at GHS700,000.d.In the income statement at GHS600,000.Clear my choice