Question 1

Match the following statements.
-Sale of the individual assets of an unincorporated sole proprietorship by the owner.

Accepted Answer

A) Transaction in this form enables double taxation to be avoided. 
B) Gain or loss is calculated separately for each asset and is subject to single taxation. 
C) Subject to double taxation. 
D) The sale is treated as the sale of a capital asset under § 741, but subject to ordinary income potential under § 751. 
E) Not subject to double taxation on the sale of corporate stock. 
A) Transaction in this form enables double taxation to be avoided. 
B) Gain or loss is calculated separately for each asset and is subject to single taxation. 
C) Subject to double taxation. 
D) The sale is treated as the sale of a capital asset under § 741, but subject to ordinary income potential under § 751. 
E) Not subject to double taxation on the sale of corporate stock.

Question 2

Khalid contributes land (fair market value of $700,000; adjusted basis of $200,000) and Dan contributes $700,000 cash to form Teal Partnership.Khalid and Dan each own a 50% interest.One year later, Teal sells the land for $800,000.How much gain is recognized by each partner?

Accepted Answer

A) $600,000 to Khalid, $0 to Dan. 
B) $550,000 to Khalid, $50,000 to Dan. 
C) $300,000 to Khalid, $300,000 to Dan. 
D) $50,000 to Khalid, $50,000 to Dan. 
A) $600,000 to Khalid, $0 to Dan. 
B) $550,000 to Khalid, $50,000 to Dan. 
C) $300,000 to Khalid, $300,000 to Dan. 
D) $50,000 to Khalid, $50,000 to Dan.

Question 3

Some fringe benefits always provide a double benefit-a deduction for the employer and an exclusion for the employee.

Accepted Answer

A) True 
 B)False

Question 4

Each of the following can pass profits and losses through to the owners: general partnership, limited partnership, S corporation, and limited liability company.

Accepted Answer

A) True 
 B)False

Match the following statements. -Sale of the individual assets of an unincorporated sole proprietorship by the owner.

Khalid contributes land (fair market value of $700,000; adjusted basis of $200,000) and Dan contributes $700,000 cash to form Teal Partnership.Khalid and Dan each own a 50% interest.One year later, Teal sells the land for $800,000.How much gain is recognized by each partner?

Some fringe benefits always provide a double benefit-a deduction for the employer and an exclusion for the employee.

Each of the following can pass profits and losses through to the owners: general partnership, limited partnership, S corporation, and limited liability company.

Introduction to Taxation

Working With the Tax Law

Taxation on the Financial Statements

Gross Income

Business Deductions

Losses and Loss Limitations

Basis, Gain and Loss, and Nontaxable Exchanges

Capital Gains and Losses

Individuals As the Taxpayers

Income, Deductions and Credits

Individuals As Employees and Proprietors

Organization, Capital Structure, and Operating Rules

Earnings Profits and Distributions

Partnerships and Limited Liability Entities

S Corporations

Multi-Juris-Dictional Taxation

Tax Credits and Corporate Alternative Minimum Tax

Filters

Exam 18: Comparative Forms of Doing Business

Match the following statements. -Sale of the individual assets of an unincorporated sole proprietorship by the owner.

Khalid contributes land (fair market value of $700,000; adjusted basis of $200,000) and Dan contributes $700,000 cash to form Teal Partnership.Khalid and Dan each own a 50% interest.One year later, Teal sells the land for $800,000.How much gain is recognized by each partner?

Some fringe benefits always provide a double benefit-a deduction for the employer and an exclusion for the employee.

Each of the following can pass profits and losses through to the owners: general partnership, limited partnership, S corporation, and limited liability company.

Introduction to Taxation

Working With the Tax Law

Taxation on the Financial Statements

Gross Income

Business Deductions

Losses and Loss Limitations

Basis, Gain and Loss, and Nontaxable Exchanges

Capital Gains and Losses

Individuals As the Taxpayers

Income, Deductions and Credits

Individuals As Employees and Proprietors

Organization, Capital Structure, and Operating Rules

Earnings Profits and Distributions

Partnerships and Limited Liability Entities

S Corporations

Multi-Juris-Dictional Taxation

Tax Credits and Corporate Alternative Minimum Tax

Filters