Slimtin Corporation Has $400,000 of Regular Taxable Income.
Slimtin Corporation has $400,000 of regular taxable income.It has depreciation adjustments of $100,000 (MACRS depreciation in excess of 150% declining balance method),and its adjusted current earnings is $600,000.
Part A-Calculate Slimtin's AMT liability.
Part B-Slimtin has a $41,000 AMT credit carryover from last year.How much,if any,can be applied this year?
A corporation is owned equally by 10 unrelated individuals.Its taxable income this year is $100,000 and its regular federal income tax liability is $22,250.The company claims a $15,000 dividends-received deduction and pays $25,000 dividends to its shareholders.The corporation had accumulated earnings and profits of $220,000 at the end of the preceding year.The company's reasonable needs of the business at the end of the year of $240,000.What is the amount of the accumulated earnings tax?
Individuals Jimmy and Ellen form JE Corporation.Ellen transfers land and a building with a $175,000 adjusted basis and $200,000 FMV in exchange for 50% of the stock of the JE Corporation and a $20,000 note.Jimmy transfers cash of $200,000 for 50% of the stock and a $20,000 note.The JE stock has a fair market value of $360,000.What is:
(a)the amount of Ellen's gain or loss recognized on the transfer?
(b)the basis of her stock in JE Corporation?
(c)JE Corporation's basis in the land and building (together)transferred by Ellen?
Janice transfers land and a building with a $180,000 adjusted basis and a $200,000 FMV to Optimum Corporation in exchange for 100% of its stock in a transaction qualifying under Sec.351.Shortly before the transfer,Janice obtains a $140,000 mortgage on the property and uses the funds to pay off personal debts.The corporation then assumes the $140,000 mortgage and issues stock worth $60,000.The mortgage assumption lacks business purpose and is intended to place cash in Janice's hands.
a.What is the gain realized by Janice?
b.What is the gain recognized by Janice?
c.What is the basis of the stock received by Janice?
d.What is Optimum's basis in the land and building?