Shauna and Danielle decided to liquidate their jointly owned corporation, Woodward Fashions Inc. (WFI). After liquidating its remaining inventory and paying off its remaining liabilities, WFI had the following tax accounting balance sheet: FMV Adjusted Basis Appreciation Cash $ 225,000 $ 225,000 Building 45,000 22,500 22,500 Land 180,000 90,000 90,000 Total $ 450,000 $ 337,500 $ 112,500 Under the terms of the agreement, Shauna will receive the $225,000 cash in exchange for her 50 percent interest in WFI. Shauna's tax basis in her WFI stock is $56,250. Danielle will receive the building and land in exchange for her 50 percent interest in WFI. Danielle's tax basis in her WFI stock is $112,500. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indicated by a minus sign.) a. What amount of gain or loss does WFI recognize in the complete liquidation

A. Building $22,500

Land $90,000

B. Recognizes gain of $180,000

C. Recognizes gain of $112,500

D. Building $45,000

Land $180,000

Explanation:

A. Based on the information given since WFI has a taxable transaction which means that WFI will recognizes gain of the amount of 22,500 on the transfer of the building and gain of the amount of 90,000 on the transfer of the land

b. Calculation for What amount of gain or loss does Shauna recognize in the complete liquidation

Based on the information given Shauna

will recognizess gain of $180,000 on the transfer of her stock to WFI ($ 225,000 - $45,000) in complete liquidation of WFI.

c. Calculation of the amount of gain or loss that Danielle recognize in the complete liquidation

Based on the information given Danielle will recognizes gain of the amount of $112,500 on the transfer of her stock to WFI ($ 225,000 - $112,500) in complete liquidation of WFI.

d. Based on the information given Danielle’s tax basis in the building will be $ 45,000 and land will be $180,000 after the complete liquidation

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

the clients (funders) and customers (individual nonprofit staff) are great to work with. that i can be open about being a person of faith when appropriate. the variety of my tasks each day.