Question
On February 19, 2015, Reggie and Mick form IClude Corporation as equal 50/50 shareholders with the following investment, for which each received 1,000 shares of
On February 19, 2015, Reggie and Mick form IClude Corporation as equal 50/50 shareholders with the following investment, for which each received 1,000 shares of IClude Corporation stock:
From Reggie
From Mick
Cash
$500,000
Land (basis $200,000; fair market value $500,000)
$500,000
- What are the federal income tax consequences if, on May 1, 2015, IClude Corporation distributes 10 shares of IClude Corporation preferred stock to each of Reggie and Mick?
- What consequences if IClude Corporation is liquidated & distributes the land and its cash pro rata on December 31, 2015 after having no income or activity for the year?
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Microeconomics Principles, Problems and Policies
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
20th edition
978-0077660819, 77660811, 978-1259450242
