Remaining Time: 2 hours, 53 seconds. Question Completion Status: QUESTION 17 Questions 17-20 are based on the following facts: On 1/1/X2, P Co. had accumulated E&P totaling $10,000. During 20x2, P Co. made the following distributions to its shareholders: J - $25,000 cash on 9/7/X2 M- Property (FMV $75,000, BASIS $65,000) on 11/3/X2. J's basis in his P Co. stock is $10,000. M's basis in his P Co. stock is $30,000. P Co. had current E&P from operations in 2012 totaling $30,000 P Co.'s recognized gain or loss on the distribution is 1.$10,000 2. $75,000 3. None of these 4.0 QUESTION 18 See Question 17 for the facts. should characterize the distribution as follows: Click Save and Submit to save and submit. Click Save All Answers to save all answers Question Completion Status: QUESTION 18 See Question 17 for the facts. J should characterize the distribution as follows: 1. $20,000 dividend; $5,000 return of capital 2.517,500 dividend: $7,500 return of capital 3. None of these 4. $25,000 dividend QUESTION 19 See Question 17 for the facts. M should characterize the distribution as follows: 1.522.500 dividend; $30,000 return of capital: $22,500 capital gain 2.575,000 dividend 3.530,000 dividend; $30,000 return of capital; $15,000 capital gain 4. None of these. SI Click Save and Submit to save and submit. Click Save All Answers to save all answers 21 Question Completion Status: 2. $75,000 dividend 3. $30,000 dividend: 530,000 return of capital: $15,000 capital gain 4. None of these QUESTION 20 See Question 17 for the facts. If the property distributed was subject to a $90,000 mortgage, under Code Sec. 311, P Co.'s gain or loss on the distribution is 1. $25,000 gain 2. $10,000 gain 3.0 4. None of these. QUESTION 21 Questions 21-24 are based on the following facts: On 8/24/x5, Hunter and 6 individuals organized M Corporation. Each received the following shares of M Corp. voting stock: Click Save and Submit to save and submit. Click Save All Answers to save all answers. W Question Completion Status: QUESTION 21 Questions 21-24 are based on the following facts: On 8/24/25, Hunter and 6 individuals organized M Corporation. Each received the following shares of M Corp, voting stock Hunter's father 2.000 Hunter's mother 2.000 Hunter 3.000 Hunter's sister 9,000 Hunter's grandfather 10,000 Hunter's friend. B 13,000 Hunter's wife 1,000 During the current tax year, M Corp, redeemed 2.000 of Hunter's shares for $30,000,1,500 of his father's shares, 1.500 of his mother's shares, 3.000 of his sister's shares, and 12,000 of Bill's shares. Hunter had a basis in the redeemed M Corp, stock of 54.000 Before the redemption, Hunter owns the following percentage of M Corporation: 1. None of these 2. 17.5 3.20 4.56 QUESTION 22 Click Saw and Subroto se and submit. Click Save All Answers to move all answers 21 MacBook Pro Remaining Time: 2 hours, 10 seconds. Question Completion Status: QUESTION ZZ See Question 21 for the facts. The redemption by Hunter will qualify as a sale or exchange for tax purposes per Code Sec. 302(X2) If Hunter owns less than the following percentage of M Corporation after the redemption: 1.50 2. None of these 3.44.8 4.16 QUESTION 23 See Question 21 for the facts. Hunter will treat the $30,000 distribution from M Corporation as follows: 1.526,000 capital gain 2.530,000 distribution subject to Code Sec. 301 3. None of these. 4.530,000 dividend Save AB Click Save and Submit to save and submit. Click Save All Answers to save all answers Question Completion Status: 4 $30.000 dividend QUESTION 24 See Question 21 for the facts. instead M Corp. had redeemed 1,000 shares of Hunter with a $4,000 basis, 500 of his father's shares, 500 of his mother's shares. 9,000 of his grandfather's shares, and 9,000 of Bill's shares, Hunter would treat the $30,000 distribution from M Corporation 1.526,000 capital gain 2. None of pese 2.530,000 distribution subject to Code Sec. 301 4.530,000 dividend QUESTION 25 Questions 25-35 are based on the following facts: z Co. adopts a plan of complete liquidation and makes the following pro rata distributions to its shareholders (assume all are individuals and each has a $2.000 basis in the 2 Co stock: Cash $40,000 Capital Asset FMV $30,000 Click Save and to swand. Click Save All Answers to move all answers MacBook Pro Remaining Time: 2 hours, 53 seconds. Question Completion Status: QUESTION 17 Questions 17-20 are based on the following facts: On 1/1/X2, P Co. had accumulated E&P totaling $10,000. During 20x2, P Co. made the following distributions to its shareholders: J - $25,000 cash on 9/7/X2 M- Property (FMV $75,000, BASIS $65,000) on 11/3/X2. J's basis in his P Co. stock is $10,000. M's basis in his P Co. stock is $30,000. P Co. had current E&P from operations in 2012 totaling $30,000 P Co.'s recognized gain or loss on the distribution is 1.$10,000 2. $75,000 3. None of these 4.0 QUESTION 18 See Question 17 for the facts. should characterize the distribution as follows: Click Save and Submit to save and submit. Click Save All Answers to save all answers Question Completion Status: QUESTION 18 See Question 17 for the facts. J should characterize the distribution as follows: 1. $20,000 dividend; $5,000 return of capital 2.517,500 dividend: $7,500 return of capital 3. None of these 4. $25,000 dividend QUESTION 19 See Question 17 for the facts. M should characterize the distribution as follows: 1.522.500 dividend; $30,000 return of capital: $22,500 capital gain 2.575,000 dividend 3.530,000 dividend; $30,000 return of capital; $15,000 capital gain 4. None of these. SI Click Save and Submit to save and submit. Click Save All Answers to save all answers 21 Question Completion Status: 2. $75,000 dividend 3. $30,000 dividend: 530,000 return of capital: $15,000 capital gain 4. None of these QUESTION 20 See Question 17 for the facts. If the property distributed was subject to a $90,000 mortgage, under Code Sec. 311, P Co.'s gain or loss on the distribution is 1. $25,000 gain 2. $10,000 gain 3.0 4. None of these. QUESTION 21 Questions 21-24 are based on the following facts: On 8/24/x5, Hunter and 6 individuals organized M Corporation. Each received the following shares of M Corp. voting stock: Click Save and Submit to save and submit. Click Save All Answers to save all answers. W Question Completion Status: QUESTION 21 Questions 21-24 are based on the following facts: On 8/24/25, Hunter and 6 individuals organized M Corporation. Each received the following shares of M Corp, voting stock Hunter's father 2.000 Hunter's mother 2.000 Hunter 3.000 Hunter's sister 9,000 Hunter's grandfather 10,000 Hunter's friend. B 13,000 Hunter's wife 1,000 During the current tax year, M Corp, redeemed 2.000 of Hunter's shares for $30,000,1,500 of his father's shares, 1.500 of his mother's shares, 3.000 of his sister's shares, and 12,000 of Bill's shares. Hunter had a basis in the redeemed M Corp, stock of 54.000 Before the redemption, Hunter owns the following percentage of M Corporation: 1. None of these 2. 17.5 3.20 4.56 QUESTION 22 Click Saw and Subroto se and submit. Click Save All Answers to move all answers 21 MacBook Pro Remaining Time: 2 hours, 10 seconds. Question Completion Status: QUESTION ZZ See Question 21 for the facts. The redemption by Hunter will qualify as a sale or exchange for tax purposes per Code Sec. 302(X2) If Hunter owns less than the following percentage of M Corporation after the redemption: 1.50 2. None of these 3.44.8 4.16 QUESTION 23 See Question 21 for the facts. Hunter will treat the $30,000 distribution from M Corporation as follows: 1.526,000 capital gain 2.530,000 distribution subject to Code Sec. 301 3. None of these. 4.530,000 dividend Save AB Click Save and Submit to save and submit. Click Save All Answers to save all answers Question Completion Status: 4 $30.000 dividend QUESTION 24 See Question 21 for the facts. instead M Corp. had redeemed 1,000 shares of Hunter with a $4,000 basis, 500 of his father's shares, 500 of his mother's shares. 9,000 of his grandfather's shares, and 9,000 of Bill's shares, Hunter would treat the $30,000 distribution from M Corporation 1.526,000 capital gain 2. None of pese 2.530,000 distribution subject to Code Sec. 301 4.530,000 dividend QUESTION 25 Questions 25-35 are based on the following facts: z Co. adopts a plan of complete liquidation and makes the following pro rata distributions to its shareholders (assume all are individuals and each has a $2.000 basis in the 2 Co stock: Cash $40,000 Capital Asset FMV $30,000 Click Save and to swand. Click Save All Answers to move all answers MacBook Pro