Vista corporation, which has current earnings and profits (ce&p)
Vista Corporation, which has current earnings and profits (CE&P) of $10,000 and accumulated earnings and profits (AE&P) of $30,000, makes a $43,000 distribution to its sole shareholder, Julie, at the end of the current year. Julie has a basis in her Vista stock of $2,000. What is the amount of taxable income Julie must report from the Vista distribution? (Points : 5)
$43,000
$41,000
$40,000
$10,000
Question 3. 3. Willow Corporation exchanged land valued at $250,000 (adjusted basis = $175,000) for a building owned by Tree Corporation valued at $350,000 (adjusted basis = $200,000) and $50,000 cash. In addition, Willow assumed the $150,000 mortgage on Tree’s building. What are Willow and Tree’s realized gains or losses on the properties exchanged, respectively?
(Points : 5)
$75,000, 0
$75,000, $150,000
$225,000, $150,000
$225,000, $200,000
None of the above
Cal contributes property valued at $50,000 (adjusted basis = $30,000) to a partnership in exchange for a partnership interest valued at $40,000 and $10,000 cash. What is Cal’s recognized gain or loss on these transfers?
(Points : 5)
0
$4,000
$10,000
$20,000
James corporation exchanges a building (fair market value = $800,000, adjusted basis = $600,000) that has a $100,000 mortgage for another building owned by Pete Corporation (fair market value = $1,100,000, adjusted basis = $600,000) that is encumbered by a $400,000 mortgage. Each party assumed the mortgage on the building received. What are James’s and Pete’s realized gains on this exchange, respectively? (Points : 5)
$200,000, $500,000
$200,000, $600,000
$500,000, $600,000
$500,000, $500,000
None of the above
In a qualified reorganization: (Points : 5)
Gain is generally deferred.
Only stock can be exchanged for stock.
One corporation must acquire all the assets of another corporation.
Two or more corporations are always involved.

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