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Daniel [21]
3 years ago
12

Tar Heel Corporation had current and accumulated E&P of $500,000 at December 31 20X3. On December 31, the company made a dis

tribution of land to its sole shareholder, William Roy. The land's fair market value was $100,000 and its tax and E&P basis to Tar Heel was $25,000. William assumed a mortgage attached to the land of $10,000. The tax consequences of the distribution to William in 20X3 would be:
Business
1 answer:
NNADVOKAT [17]3 years ago
6 0

Answer:

Dividend of $90,000 and a tax basis in the land of $100,000

Explanation:

The computation of the tax consequences of the distribution of tax is shown below:

As per the data given in the question,

Particulars Amount

E&P $500,000

Fair market value of land $100,000   (A)

Mortgage attached $10,000  (B)

Dividend $90,000  (A - B)

Tax basis in land $100,000

This derives that the dividend amount is of $90,000 and the tax basis for the land is $100,000

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Option D Are obligations that the company is to pay within the forthcoming year.

Explanation:

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3 years ago
The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $15.90 for each of the 25 million shares s
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Answer:

22.38%

Explanation:

Raven corporation has just gone public

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The first step is to calculate the net amount raised

Net amount that was raised= 15.90×25,000,000 = 397,500,000

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= 396,310,000

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The federal fiscal year always starts on October 1st and will end on September 30th the following year. These are divided into four quarters each year. This will cover a 12 month calendar year.

A fiscal year can contain 365 or 366 days depending if there is a leap year. This is used as a starting place to start commencing your record keeping in order and when to conclude for the year.

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