x corporation is owned by a single individual A. X has three assest: cahs 20000, inventory FMV 190000, AB 140000, land FMV 180000, ab 210000. X adopts a formal plan of liquidation and immediately thereafter distributes its assets to A. A’s adjusted basis in his X corporation stock is equal to 285000? what are the tax consequences of this liquidation to X corporation and A?
1, how would you answer to part A change if X corp also had liabilities of 40000?
2 how would your answer to part A change is A had an adjusted basis in his X corporation stock of 405000
3. giw wiykd your answer to part a change if X corportation had a contingent and speculative liability equal to 300000, which liability was paid by A two years after the corp was liquidated?
4, how would your answer to part A change if A had contributed to the land to X corp six months earlier in a transaction govened by section 351
S corporation is owned 100% by P corp. S has three assests cash 20000, inventory fmv 200000, ab 140000, land fmv 180000, ab 210000, s adopts a fomal liquidation and immediately thereafter distributes its assets to p. p’s adjusted absis in its s corp stock is equal to 285000. p had acquired s corp six years prior to the liquidation. what are the tax consequences of this liquidation to s corp and x corp?
assume in part A that B an unrelated individual owned 10% of S corp and instead of 20000of cash, s corp owned a machine with a fmv of 20000, and an adjusted basis of 5000. b receives this machine from s corp pursuant to the plan of liquidation. assume furthur that b’s ab in his s corp stock is equal to 13000. what are the tax consequences to p corp, s corp and b as a result of the liquidation of s corp
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