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ABC Corp is owned 80% by Atlanta Corp and 19% by Bethany. ABC decides to liquidate. How is he liquidation treated for federal income tax

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ABC Corp is owned 80% by Atlanta Corp and 19% by Bethany. ABC decides to liquidate. How is he liquidation treated for federal income tax purposes? a. Because the requirements of I.R.C. sect 332, are satisfied, it is nontaxable to Atlanta under l.R.C. sect 337, but taxable to Bethany under I.R.C. sect 331. b. Because the requirements of I.R.C. sect 332 are not satisfied, it is taxable to Atlanta and Bethany under sect 331. c. It is a nontaxable to Bethany under sect 332 but taxable to Atlanta Corp under I.R.C. sect 331 d. It is a transaction to which I.R.C. sect 351 applies. Joan contributes $10,000 and a piece of property with a fair market value of $10,000 (her basis in the property is $15,000) in exchange for all the stock of a new corporation, XYZ Corp. How much, if any, gain or loss does Joan recognize upon the transfer of the money and property to the corporation in exchange for the shares? What is Joan's basis in her shares of stock? What is XYZ's basis in the property (please remember to consider I.R.C. sect 362(e) in your analysis)? a. Joan recognizes a $5,000 loss; Joan's basis is $20,000; XYZ's basis is $15,000. b. Joan recognizes no gain or loss; Joan's basis is $25,000; XYZ's basis is $10,000. c. Joan recognizes no gain or loss; Joan's basis is $25,000; XYZ's basis is $15,000. d. Joan recognizes no gain or loss; Joan's basis is $20,000; XYZ's basis is $15,000. Muhammed owns 10 shares of Montreux corporation. His wife Melanie owns 10 shares. His ex-wife owns 20 shares. Muhammed also owns 50% of Pajamas LLC, a partnership for federal tax purposes. Pajamas owns 20 shares of Montreux corporation. Under I.R.C. sect 318, how many shares of Montreux is Muhammed deemed to own? a. 10 b. 20 c. 30 d. 40 e. 50

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