Lori Anne (age 40) incorporates her CPA firm by transferring her computer equipment (basis of $116,000, FMV of $37.000) to her newly formed corporation, Bean Counters, Inc., in exchange for all 13.000 shares of Bean Counters stock, worth $95.000. Bean Counters also assumed Lori Anne's $67,000 of liabilities. $62,000 of the liabilities was business related the remaining $5,000 was Lori Anne's debt to a local tabloid that promised not to expose her clandestine interoffice affair with her much younger employee, Mickey (age 22). Lori Anne is the sole shareholder. How much gain, if any, must Lori Anne recognize on the incorporation? A) $5,000 B some other amount $62,000 546,000 How much is Bean Counters Inc.'s basis in the property transferred from Lori Anne? $116,000 B $95,000 some other amount $162,000 Question 10 5 Points Corinne contributes her land. (basis of $78,000, fair market value of $190,000) for 24.000 shares of Legal Aces. Inc. stock worth $123,000. The corporation also assumed Corinne's $67.000 of business debts. Corinne's sister, Stunning Sandy, owns the other 6,000 shares worth $60,000. Stunning Sandy contributed services to the corporation (basis of $0.& FMV of $54.000), along with $6,000 cash. What result? A None of the above. B Neither Corinne nor Sandy has any recognized gain on this transaction. Corinne has a recognized gain of $112,000: Sandy has a recognized gain of 554.000. Corinne has a recognized gain of so: Sandy has a recognized gain of $54000 Gilmore's Stupor Duck, Inc. (a comedy club...imagine that!!!) reports net income per the books amounting to $46,044,391. The corporation reports the following activity: Unearned Revenue: $808,372 Life Insurance Proceeds $26,525,826 Depreciation deducted on the tax return: $5,413.055 Depreciation recorded on the books: $2,645,410 Excess Capital Losses: $177,610 Tax Exempt Interest: $7.035.000 Charitable contributions recorded on the books: $365.220 Charitable contributions deducted on the tax return: $762.775 Bad Debts Expense recorded on the books: $345,202 Bad Debts Expense deducted on the tax return: $280,473 Federal Income Tax Expense: $8,007,057 Meals and Entertainment recorded on the books: $340,982 Meals and Entertainment recorded on the tax return: 50_ How much is the difference between the tax deduction and book expense for depreciation? 52,767,645 more on tax return B So on either side some other amount $2.767,645 more on the books Where is the above difference recorded on Schedule M-1? A Neither Line 8a nor Line 5a B none of the above are correct Line Sa Line 8a Question 13 5 Points D Where is the reconciling difference for bad debts expense recorded on Schedule M-1? Line 50 B Line 8d 3 none of the above are correct Neither Line Sd nor Line 8d