Question
Looking for help with this tax scenario. U.S 2018 tax laws apply to this question. in 2020, Geonosis Industries, Inc (GII). reported a taxable income
Looking for help with this tax scenario. U.S 2018 tax laws apply to this question.
in 2020, Geonosis Industries, Inc (GII). reported a taxable income of $500,000 from operations this year. During the year the company made a distribution of land to its sole shareholder, Sly Tyranus. The Lands FMV as $75,000 and its E&P Basis to GII was $125,000. Sly assumed a mortgage attached to the land of $15,000. The company had accumulated E&P of $750,000.
a. Compute GIIs Taxable Income and income tax.
b. Computer Tigers Current E&P
c. Compute Tigers Accumulated E&P at the beginning of the year for 2021.
d. Compute the amount of dividend income Sly recognizes as a result of the distribution.
e. What is Slys tax basis in the land he received from GII?
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