Week 5 Quiz Chapter 19 Q1 1-10

Please help me with these accounting problems. They are all multiple choice.

1-1

Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $650,000. The corporation's basis in the Tea Company stock was $355,000. The land had a basis to Tea Company of $675,000. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives? Multiple Choice Q $295 000 gain recognized and a basis in the land of $675,000 Q $295,000 gain recognized and a basis in the land of $650,000 Q No gain recognized and a basis in the land of $675,000 O No gain recognized and a basis in the land of $320,000 Katarina transferred her 10 percent interest to Spartan Company as part of a complete liquidation of the company. In the exchange, she received land with a falr market value of $200,000. Katarina's basis in the Spartan stock was $100,000. The land had a basis to Spartan Company of $50,000. What amount of gain does Spartan recognize in the exchange and what is Katarina's basis in the land she receives? Multiple Choice Q $100.000 gain recognized by Spartan and a basis in the land of $200,000 to Katarina $150,000 gain recognized by Spartan and a basis in the land of $200,000 to Katarina O No gain recognized by Spartan and a basis in the land of $100,000 to Katarina O No gain recognized by Spartan and a basis in the land of $50,000 to Katarina Inez transfers property with a tax basis of $200 and a fair market value of $300 to a corporation in exchange for stock with a fair market value of $250 in a transaction that qualifies for deferral under 351. The corporation assumed a liability of $50 on the property transferred. What is the corporation's tax basis in the property received in the exchange? Multiple Choice (::) $150 (::) $200 (::) $250 O $300 Tristan transfers property with a tax basis of $900 and a fair market value of $1,200 to a corporation in exchange for stock with a fair market value of $900 and $200 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $100 on the property transferred. What is the corporation's tax basis in the property received in the exchange? Multiple Choice Q $1.200 $1100 O Q $1.000 O $900 Which of the following statements best describes the tax benefits that arise from the sale of 1244 stock? Multiple Choice O 81244 allows an individual shareholder to exempt gain from sale of the stock from tax. O 81244 allows an individual shareholder to deduct all of the loss from sale of the stock as an ordinary loss in the year of the sale. O 81244 allows an individual shareholder to deduct up to $50,000 of the loss from sale of the stock as an ordinary loss in the year of the sale. O 1244 allows a corporate shareholder to deduct up to $50,000 of the loss from sale of the stack as an ordinary loss in the year of the sale. Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $517,500 plus $517,500 in cash. Simone's tax basis in the Purple stock was $278,000. What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives? Multiple Choice O $757.000 gain recognized and a basis in Plum stock of $1,035,000 O $757.000 gain recognized and a basis in Plum stock of $517,500 O $517.500 gain recognized and a basis in Plum stock of $517.500 O $517.500 gain recognized and a basis in Plum stock of $278,000 Tristan transfers property with a tax basis of $1,390 and a fair market value of $1,860 to a corporation in exchange for stock with a fair market value of $1,390 and $324 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $146 on the property transferred. What is the corporation's tax basis in the property received in the exchange? Multiple Choice Q $1.860 $1.714 O O $1536 O $1,390 Billie transferred her 20 percent interest to Jean Company as part of a complete liquidation of the company. In the exchange, she received land with a fair market value of $200,000. Billie's basis In the Jean stock was $100,000. The land had a basis to Jean Company of $400,000. What amount of loss does Jean recognize in the exchange and what is Billie's basis in the land she receives? Billie is not considered a related party to Jean Company. Multiple Choice O $200,000 loss recognized by Jean and a basis in the land of $200,000 to Billie $200,000 loss recognized by Jean and a basis in the land of $400,000 to Billie O No loss recognized by Jean and a basis in the land of $200,000 to Billie O No loss recognized by Jean and a basis in the land of $400.000 to Billie Packard Corporation transferred its 100 percent interest to State Company as part of a complete liquidation of the company. In the exchange, Packard received land with a fair market value of $400,000. Packard's basis in the State stock was $695,000. The land had a basis to State Company of $545,000. What amount of loss does State recognize in the exchange and what is Packard's basis in the land it receives? Multiple Choice O $145,000 loss recognized by State and a basis in the land of $400,000 to Packard. $145,000 loss recognized by State and a basis in the land of $545,000 to Packard. O No loss recognized by State and a basis in the land of $400,000 to Packard. O No loss recognized by State and a basis in the land of $545,000 to Packard. Juan transferred 100 percent of his stock in Rosa Company to Azul Corporation in a Type B stock-for-stock exchange. In exchange, he received stock in Azul with a fair market value of $1,000,000. Juan's tax basis in the Rosa stock was $400,000. What amount of gain does Juan recognize in the exchange and what is his basis in the Azul stock he receives? Multiple Choice O $600,000 gain recognized and a basis in Azul stock of $400,000 O No gain recognized and a basis in Azul stock of $400,000 O $600,000 gain recognized and a basis in Azul stock of $1,000,000 O No gain recognized and a basis in Azul stock of $1,000,000