$1)$ A corporation has taxable income of $$500,000.$

What$$s the corporate income tax liability for $2021?$

$2)$ A corporation has taxable income of $$500,000$ before considering life insurance proceeds of $$35,000,$ fines of $$30,000,$ E&P depreciation of $$200,000$ which is more than $$100,000$ taxable income depreciation, a federal tax refund of $$20,000,$ $$20,000$ employee expenses, The company has federal income tax liability of $$180,000$ What are the firm$$s earnings and profits?

$3)$ A calendar year corporation has current earnings and profits of $$150,000$ and $$200,000$ in accumulated earnings and profits. The corporation distributes $$450,000$ to its sole shareholder.

How much dividend income does the shareholder recognize?

$4)$ Ten individuals each own $1,000$ of $10,000$ shares of stock outstanding.

One of the individuals wants cash to buy a new car and convinces all of the shareholders to consent to a redemption of $100$ shares of stock each. The corporation will repurchase the $1000$ total shares of stock using funds it has on hand.

What is the proper tax treatment of this share redemption, from the point of view of the individuals?

$5)$ An investor takes a $10\%$ stake in a large publicly traded corporation and then succeeds in pressuring the board of the company to make various internal changes that should improve the value of the firm.

Later, the investor decides he wants to sell his stock, but he cannot find anyone to buy it as a block. To keep the stock from being sold on the open market and depressing the price, the company agrees to repurchase the investor$$s entire block of stock at a price exceeding his basis.

What is the proper tax treatment of this share redemption, from the point of view of the investor?

$6)$ Sarah Smiles sells her $40\%$ interest in Smiles Inc., an S corporation, to Frankie Frownie on January $31.$

Smiles Inc. earned $$420,000$ from January $1$ to January $31$ and a total of $$2,890,000$ from January $1$ through December $31(366$ days$).$

Using the daily allocation method, how much income should Sarah Smiles report?

$7)$ Walstein$$s$,$ an S corporation, reports the following results for the current year:

Ordinary income $$45,000$

Long$-$term capital gain $$10,000$

Municipal bond interest income $$5,000$

Walstein$$s makes a $$250,000$ cash distribution to its sole shareholder during the year. The shareholder's basis for Walstein$$s stock on January $1$ was $$110,000.$

How much of the distribution will be taxable?

$8)$ An individual owns $25\%$ of the stock of an S corporation. At the beginning of the year, the basis for that share of the stock is $$100,000.$

During the year, the corporation has ordinary income of $$150,000,$ bond income of $$30,000,$ long$-$term capital gains of $$25,000,$ and a short$-$term capital loss of $$15,000.$

The corporation$$s tax year is the same as the calendar year.

What is the individual$$s basis at the end of the year?

$9)$ An individual owns $15\%$ of the stock of an S corporation.

At the beginning of the year, the basis for that share of the stock is $$545,000.$ During the year, the corporation has ordinary income of $$975,000,$ bond income of $$75,000,$ long$-$term capital gains of $$20,000,$ but it also sells a major office building that it has held for several years at a $$450,000$ loss.

The corporation$$s tax year is the same as the calendar year.

What is the individual$$s basis at the end of the year?

$10)$ An individual receives a $25\%$ share in a partnership in exchange for contributing some property with a fair market value of $$125,000$ to the partnership. The property had a $$60,000$ basis to the partner, and the partnership also assumes the individual$$s $$25,000$ in liabilities related to the purchase of the property.

What is the individual$$s basis in the partnership if the partnership had $$100,000$ in liabilities prior to this transaction?

$11)$ Mark, a partner with $25\%$ capital and profit interest, received his Schedule K$-1$ from Buzz Lightyear Toys LP$.$ At the beginning of the year, Mark's tax basis in his partnership interest was $$140,000.$

Mark's current year's Schedule K$-1$ reported an ordinary loss of $$25,000,$ long$-$term capital gain of $$13,000,$ qualifying dividends of $$2,000,$ $$6,500$ of nondeductible expenses, a $$22,000$ cash contribution, and a reduction of $$5,000$ in his share of partnership debt.

What is Mark's adjusted basis in his partnership interest at the end of the year?

Ignore any possible effect of a qualified business income $($QBI$)$ deduction.

$12)$ An individual is liquidating a stake in a partnership. The individual$$s predistribution basis for the partnership is $$65,000,$ and the individual contributed $$97,000$ in cash when entering the partnership.

In a liquidating distribution, a partner will receive $$75,000$ in cash.

What are the tax consequences to the partner?