During the year, Frank exchanged real estate held for investment (i e , parcel A) for other real estate to be held for investment (i e , parcel B) On the date of the exchange, the Franks basis in parcel A was $400,000 He received in exchange $500,000 in cash and parcel B with a fair market value of $430,000 Frank should recognize a gain on the exchange of $530,000 $500,000 $300,000 $0 None of these Bob Tettor, a sole proprietor, sold office equipment in January Year 3 for $2,000 which had been used in his business Additional information follows Purchase date January 1, Year 1 Original Cost $1,800 Depreciation under MACRS $1,044 Straight line depreciation would have been $900 Bob should recognize gain on the sale of the equipment as $1,244 ordinary income $ 0 Sec 1231 gain $344 ordinary income $900 Sec 1231 gain $1,044 ordinary income $200 Sec 1231 gain $900 ordinary income $144 Sec 1231 gain None of these Erica transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for all of Robins stock, worth $300,000, and a 10 year note The note was executed by Robin and made payable to Erica in the amount of $200,000 As a result of the transfer Erica does not recognize gain Erica recognizes gain of $400,000 Robin Corporation has a basis of $100,000 in the land Robin Corporation has a basis of $300,000 in the land None of these Lynn transfers land having a $50,000 adjusted basis, an $80,000 FMV, and $10,000 cash to Allied Corporation in exchange for 100 of Allied's stock The corporation assumes the $70,000 mortgage on the land Which of the following statements is correct Lynn recognizes no gain and the stock basis is $60,000 Lynn recognizes a $10,000 gain and the stock basis is $60,000 Lynn recognizes no gain and the stock basis is $50,000 Lynn recognizes a $10,000 gain and the stock basis is zero None of these Trenton Corporation has gross income on sales of $140,000 and deductible operating expenses of $180,000 Trenton owns 80 percent of Concord corporation Concord paid Trenton a $30,000 dividend In addition, Trenton has a net capital gain of $60,000 Trenton and Concord do not file a consolidated income tax return Compute Trentons taxable income ($20,000) ($40,000) $20,000 $26,000 None of these Eagle Corporation has accumulated E P of $24,000 at the beginning of the current tax year Current E P is $20,000 During the year, the corporation makes the following distributions to its sole shareholder who has a $22,000 basis for her stock Date Amount Distributed April 1 $20,000 June 1 20,000 August 1 15,000 November 1 5,000 The tax treatment of Eagle Corporations $15,000 August 1 distribution would be $15,000 is taxable as a dividend $5,000 from current E P and the balance from accumulated E P $5,000 is taxable as a dividend from current E P, and $10,000 is tax free as a return of capital $15,000 is taxable as a dividend from accumulated E P $4,000 is taxable as a dividend from accumulated E P, and $11,000 is tax free as a return of capital None of these

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During the year, Frank exchanged real estate held for investment (i.e., parcel A) for other real estate to be held for investment (i.e., parcel B). On the date of the exchange, the Franks basis in parcel A was $400,000. He received in exchange $500,000 in cash and parcel B with a fair market value of $430,000.

Frank should recognize a gain on the exchange of

Bob Tettor, a sole proprietor, sold office equipment in January Year 3 for $2,000 which had been used in his business. Additional information follows:

Purchase date: January 1, Year 1

Original Cost: $1,800

Depreciation under MACRS $1,044

Straight-line depreciation would have been $900

Bob should recognize gain on the sale of the equipment as:

Erica transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for all of Robins stock, worth $300,000, and a 10-year note. The note was executed by Robin and made payable to Erica in the amount of $200,000. As a result of the transfer:

Lynn transfers land having a $50,000 adjusted basis, an $80,000 FMV, and $10,000 cash to Allied Corporation in exchange for 100% of Allied's stock. The corporation assumes the $70,000 mortgage on the land. Which of the following statements is correct?

Trenton Corporation has gross income on sales of $140,000 and deductible operating expenses of $180,000. Trenton owns 80 percent of Concord corporation. Concord paid Trenton a $30,000 dividend. In addition, Trenton has a net capital gain of $60,000. Trenton and Concord do not file a consolidated income tax return. Compute Trentons taxable income.

Eagle Corporation has accumulated E&P of $24,000 at the beginning of the current tax year. Current E&P is $20,000. During the year, the corporation makes the following distributions to its sole shareholder who has a $22,000 basis for her stock.

The tax treatment of Eagle Corporations $15,000 August 1 distribution would be

$15,000 is taxable as a dividend; $5,000 from current E&P and the balance from accumulated E&P.
$5,000 is taxable as a dividend from current E&P, and $10,000 is tax-free as a return of capital.
$15,000 is taxable as a dividend from accumulated E&P.
$4,000 is taxable as a dividend from accumulated E&P, and $11,000 is tax-free as a return of capital.
None of these.