Taxation of Business Entities and Transactions
Taxation of Business Entities and Transactions TAX 4001
University of Central Florida
Popular in Course
Popular in Taxation
verified elite notetaker
This 4 page Class Notes was uploaded by Bridie Bradtke on Thursday October 22, 2015. The Class Notes belongs to TAX 4001 at University of Central Florida taught by Marcye Hampton in Fall. Since its upload, it has received 50 views. For similar materials see /class/227555/tax-4001-university-of-central-florida in Taxation at University of Central Florida.
Reviews for Taxation of Business Entities and Transactions
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 10/22/15
Tax 4001 Fall 2011 Hampton Practice Problems Exam ll 1 For each of the following transactions identify how much gain the taxpayer will recognize and the taxpayer s basis in the new property a Maude exchanges computer equipment with a basis of 25000 and a FMV of 45000 for computer equipment with a FMV of 37000 and a motorcycle with a FMV of 8000 Maude s Recognized Gain Maude s basis in new computer equipment I Maude s basis in b Cane Corporation s showroom is destroyed by a hurricane in September 2010 when its basis is 130000 and its FMV is 180000 The insurance company reimburses Cane 180000 In December 2010 Cane Corporation purchases a new showroom for 140000 Cane s Recognized Gain Cane s Basis in new 2 White Corporation s first disposition of a Section 1231 Asset occurred in 2006 Fill in the table below to indicate the character of White s Net 1231 Gainlosses for the period 2006 2010 3 Taxpayer exchanges an apartment building with an adjusted basis of 47000 and a FMV of 55000 and boot Green lnc stock with an adjusted basis of 9000 and a FMV of 6000 for a rental house with a FMV of 61 000 What is the recognized gain or loss and what is the taxpayer s basis in the rental house 4 Melody gives her niece Joy a machine to be used in her business with a FMV of 8500 and an adjusted basis in Melody s hands of 9500 What is Joy s basis for depreciation Assuming Joy takes 3000 of depreciation and then sells the machine for 4000 how much is her recognized gain or loss 5 Kevin purchased 5000 shares of Purple Corporation stock at 1 0share to be held for investment Two years later he receives a 5 nontaxable common stock dividend At the time the common stock had a FMV of 1250share What is the per share basis of the Purple Corporation stock If two months after receiving the stock dividend Kevin sells 100 ofthe new shares he receives for 1200share what is the amount and character of his recognized gain or loss 6 During 2010 Max recognizes a 30000 Section 1231 gain and a 20000 Section 1231 loss Prior to this year Max39s only Section 1231 item was a 12000 loss two years ago What is the amount and character of gain recognized by Max in 2010 7 During 2011 a C Corporation sells equipment for 280000 that it had purchased and placed in service in 2009 The equipment cost 270000 and 70000 of depreciation was taken What is the amount and character ofthe gain recognized by the corporation 8 Wilson Corporation a C Corp sells an office building on 93010 The building was originally purchased in 1995 for 200000 MACRSSL Depreciation of 50000 has been taken on the building since its purchase The building was sold for 220000 What is the amount and character of gain recognized by Wilson Corp on the sale 9 Answer 8 again assuming Wilson is an individual instead of a Corporation 10 Ryan a single individual has taxable income of 80000 in 2011 before consideration ofthe following capital gains and losses all recognized in August 2011 3000 STCL 3000 28 LTCG 2000 25 LTCG 6000 Regular LTCG Compute Ryan s additional tax due as a result of these capital gains and losses 11 Tania a single taxpayer sold three capital assets during September 2011 She sold a painting held eight years for a gain of 4000 stock held three years for a loss of 2300 and stock held seven months for a gain of 7900 Tania s ordinary income marginal tax rate is 35 Compute Tania s additional tax due as a result of these capital transactions 12 Fran purchased computer equipment on March 1 2007 for 10000 She used the equipment 100 in her small business until November 15 2010 when she sold it She has been depreciating the equipment as MACRS 5 year property since 2007 1 2 year convention she elected out of bonus depreciation Identify the amount and character of gainloss that Fran would recognize in each of the following independent situations a Sold for cash 8400 b Sold for cash of 2000 c Sold for cash of 11000 13 Hero Corporation a C Corp disposed ofthe following assets all Sec 1231 property during 2011 Asset Deprec Cost Accum Adjusted Sale Method Deprec Basis Price Office Furniture MACRS DDB 40000 30000 10000 22000 Building MACRS SL 100000 40000 60000 105000 Land WA 50000 0 50000 60000 a How much is Hero Corporation39s Sec 1245 ordinary income recapture b How much is Hero Corporation39s Sec 1250 ordinary income recapture c How much is Hero Corporation39s Sec 291 ordinary income recapture 3 iquot current year net Sec 1231 gain loss What is Hero39s net Sec 1231 gain loss for 2011 If Hero has 6000 of unrecaptured Sec 1231 losses from 2010 what is the character of the
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'