Business, 03.03.2020 17:31 kaylaaguilar6538

Sandra contributes appreciated property (i. e., adjusted basis of $65,000 and a fair market value of $100,000) to her business entity in a transaction that qualifies for nonrecognition of gain. Sandra's ownership interest is 60 percent. The business entity later sells the appreciated property for $110,000. The property is not depreciable. Which of the following statements is correct?
a. If the entity is an S corporation, the S corporation's gross income is increased by $10,000 in the year of the sale of the property by the S corporation and Sandra's gross income is increased by $6,000 ($10,000 × 60%).

b. If the entity is a C corporation, the corporation's gross income is increased by $10,000 in the year of the sale of the property by the corporation.

c. If the entity is a partnership, Sandra's gross income is increased by $41,000 [($35,000 × 100%) + ($10,000 × 60%)] in the year of the sale of the property by the partnership.

d. All of these choices are correct.

e. None of these choices are correct.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 01:40, lb4628830

Select the word from the list that best fits the definition sometimes

Answers: 2

continue

Business, 22.06.2019 04:00, hahalol123goaway

Which law would encourage more people to become homeowners but not encourage risky loans that could end in foreclosure? options: offering first time homebuyers tax-free accounts to save for down payments requiring all mortgages to be more affordable, interest-only loans outlawing home inspections and appraisals by mortgage companies limiting rent increases to less than 2% a year

Answers: 2

continue

Business, 22.06.2019 11:30, emocow

1. regarding general guidelines for the preparation of successful soups, which of the following statements is true? a. thick soups made with starchy vegetables may thin during storage. b. soups should be seasoned throughout the cooking process. c. finish a cream soup well before serving it to moderate the flavor. d. consommés take quite a long time to cool. student c incorrect

Answers: 2

continue

Business, 22.06.2019 17:00, allofthosefruit

Jillian wants to plan her finances because she wants to create and maintain her tax and credit history. she also wants to chart out all of her financial transactions for the past federal fiscal year. what duration should jillian consider to calculate her finances? from (march or january )to (december or april)?

Answers: 1

continue

You know the right answer?

Sandra contributes appreciated property (i. e., adjusted basis of $65,000 and a fair market value of...