1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lynna [10]
3 years ago
15

Tiger, Inc., a calendar year S corporation, is owned equally by four shareholders: Ann, Becky, Chris, and David. Tiger owns inve

stment land that was purchased for $160,000 four years ago. On September 14 of the current year when the land is worth $240,000, it is distributed to David. Assuming that David's basis in his S corporation stock is S270,OOO on the distribution date.
Required:
Discuss any Federal income tax ramifications.
Business
1 answer:
matrenka [14]3 years ago
5 0

Answer and Explanation:

The computation of the federal income tax ramifications are shown below:

At the corporate level, the capital gain is

= Worth of the land - the purchased value of the land four years ago

= $240,000 - $160,000

= $80,000

Since there is four shareholders, so the amount each shareholder held is

= $80,000 ÷ 4

= $20,000

And, the David stock basis drop is

= David basis in S corporation stock - land worth + amount of each shareholder

= $270,000 - $240,000 + $20,000

= $50,000

You might be interested in
Recommend further strategies companies woolworths in south africa may use to protect the environment
djverab [1.8K]

They are committed to sending less waste to landfills, recycling as much as possible, and using recyclable materials wherever possible.

Some Recycling Methods to Reduce Waste From recycled plastic shopping carts to signage, everything in the store is made from recycled materials.

We care about the environment and strive towards a zero net impact and transition to a low-carbon future. We care about how our products are made and are committed to a completely transparent, traceable, and ethical supply chain.

Conclusion Woolworths has a potential customer retention marketing strategy. Geographic segmentation is the company's greatest strength. However, the price competition facing the organization in the Australian market is very dominant.

Learn more about The environment here:-brainly.com/question/24182291

#SPJ4

3 0
1 year ago
Which of the following types of funding for college requires repayment?
jek_recluse [69]

Answer: Loan

Explanation:

3 0
2 years ago
Read 2 more answers
Which of the following would likely be covered under homeowners insurance but NOT by renter's insurance? A)Your basement floods,
Snowcat [4.5K]
I would say that B), C) and D) would apply as events that would be covered by one's own homeowner insurance for sure. The flooding, as long as it wasn't one's own fault, ie it was the neighbour's fault or it ingressed from outside for example should be covered by the building insurance if it is a strata complex and if one has a deductible for flooding in case of one's fault, that will help too.
8 0
3 years ago
Read 2 more answers
Luigi minimized the stress of testing positive for HIV by viewing this circumstance as an opportunity for a renewed religious co
marissa [1.9K]

His reaction best illustrates the importance of <u>stress appraisal</u>.

<u>Explanation</u>:

Stress appraisal explains how the individuals handle and cope with the stressful event. The individuals are monitored and evaluated on how they handle the situation or event. The reaction of the people may differ on how they understand the happening.

The person undergoing stress may be emotional and the outcomes of the person depend on the level of the stress he/she is undergoing. The person with stress may feel tensed, angry and frustrated.

3 0
2 years ago
Read 2 more answers
Prior to the advent of the internet, which media grew faster than any other advertising medium in history?
Paladinen [302]

Answer:

Social media is the fastest growing trend in the history of the world. This sector

has grown faster than the Internet itself. Within the first ten years of being publicly

available, the Internet managed to gather roughly 1 billion users.

5 0
3 years ago
Other questions:
  • Techno is planning a security offering under regulation d, rule 505. under this rule, techno can
    7·1 answer
  • Light poles to be paid for in installments by affected property owners$350,000 Van used to transport supplies to all city depart
    14·1 answer
  • In order to save $57,000 in five years, John will start saving money next month. He already has $10,000 in his account. The acco
    11·1 answer
  • Consider the following activities that take place in a veterinary clinic.
    11·1 answer
  • A strategy is: Multiple Choice an action plan to maximize rewards in the current period in return for big risks. a procedure for
    6·1 answer
  • Which of the following advertising mediums can be expensive and takes a long time to plan and produce, but you are able to selec
    8·1 answer
  • Prepare journal entries for each transaction listed. (If no entry is required for a transaction/event, select "No Journal Entry
    5·1 answer
  • Why might a business conduct a life cycle assessment?
    6·1 answer
  • Since the mid-20th century, globalization has resulted in:
    9·2 answers
  • The general ledger of Red Storm Cleaners at January 1, 2015, includes the following account balances:
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!