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blondinia [14]
3 years ago
15

JBC Corporation is owned 20 percent by John, 30 percent by Brian, 30 percent by Charlie, and 20 percent by Z Corporation. Z Corp

oration is owned 80 percent by John and 20 percent by an unrelated party. Brian and Charlie are brothers. Answer each of the following questions about JBC under the constructive ownership rules of Section 267:<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
a. What is John's percentage ownership?
b. What is Brian's percentage ownership?
c. What is Charlie's percentage ownership? _________%
d. If Brian sells property to JBC for a $6,000 loss, what amount of that loss can be recognized for tax purposes (before any annual limitations)?
Business
1 answer:
USPshnik [31]3 years ago
4 0

Answer:

Part (a)  

The percentage ownership of Mr. John is 20% + (80% x 20%) = 36%

Part (b)

The percentage ownership of Mr. Brian is 30% + 30% = 60%

Part (c)

The percentage ownership of Mr. Charlie is 30% + 30% = 60%

Part (d)

The amount that could be recognized for the purposes of tax would be $0, as Mr. Brian owns more than half that is more than 50% of XYZ Corp. either directly or indirectly.

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4 0
2 years ago
Monte inherited 1,000 shares of Corporation Zero stock from his father who died on March 4, 2020. His father paid $44 per share
Marina86 [1]

Answer:

$6,000 LTCG

Explanation:

Calculation to determine the amount and character of the gain or loss that Monte recognizes

Using this formula

Recognized gain or loss =Amount realized -Basis

Let plug in the formula

Recognized gain or loss=(1,000 Shares*$54 per share)-(1,000shares*$48 per share)

Recognized gain or loss=$54,000-$48,000

Recognized gain or loss=$6,000 LTCG

Therefore the amount and character of the gain or loss that Monte recognizes is $6,000 LTCG reason been the any gain Amount on the sales of property that was inherited are often tend to be LTCG

6 0
3 years ago
What factor reflects the 'cost of money'?
abruzzese [7]

Answer:

Production opportunities, time preferences for consumption, risk, inflation. Explanation: The cost of money is the interest rate that lenders charge borrowers, and is determined by the supply and demand of funds.

5 0
3 years ago
Central Supply purchased a new printer for $67,500. The printer is expected to operate for nine (9) years, after which it will b
Sergeu [11.5K]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Central Supply purchased a new printer for $67,500. The printer is expected to operate for nine (9) years, after which it will be sold for salvage value (estimated to be $6,750).

Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]

Year 1= 2*[(67,500 - 6,750)/9]= $13,500

8 0
3 years ago
The best indication of a property's value comes from:
Andrej [43]
I believe the correct answer is option C. The best indication of a property's value comes from recently sold properties. A property's value would be higher when the place is a transportation access point and around it many infrastructure are present or it is a tourist spot.
8 0
3 years ago
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