Business, 30.03.2020 23:51 jessicamcummins

Carly owns 25% of base corporationâ€™s single class of stock and premier corporation owns the remaining 75%. carlyâ€™s basis in the base stock is $200,000 and premier corporationâ€™s basis in the base
stock is $600,000. carly receives property with a $175,000 adjusted basis and a
$250,000 fmv and premier corporation receives property with a $600,000 adjusted
basis and a $750,000 fmv in complete liquidation of base corporation. all of
baseâ€™s cash is used to pay its liabilities. which of following statements is
correct concerning the tax effects of the liquidation?
a) neither carly nor premier corporation will recognize a gain.
b) carly will recognize some gain but premier corporation will not recognize any gain.
c) both carly and premier will recognize some gain.
d) carly will not recognize any gain but premier will recognize some gain.

Answers: 3

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Answers

Answer from: josephacarmona

Explanation:

both carly and premier will recognize some gain.

Answer from: alimfelipe

C) both Carly and Premier will recognize some gain.

Explanation:

Carly's gain = property's fair market value - stock basis = $250,000 - $200,000 = $50,000 gain

Premier's gain = property's fair market value - stock basis = $750,000 - $600,000 = $150,000 gain

In order for Premier not to recognize any gain on the distribution, it should have owned at least 80% of the corporation's stock in order to satisfy Section 332 exemption.

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Answer from: Quest

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

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