Paper , Order, or Assignment Requirements
A.
Gail and John decide to form a new corporation called Titans Corporation.
Gail transfer property with a basis of $25,000 and a current value of $200,000 in exchange for 50 shares of Titans Corporation. John transfers property with a basis of $50,000 and a current value of $165,000. John also will provide accounting and tax services to Titans Corporation. John receives 50 shares in the new Titans Corporation. The value of John’s services provided is $35,000.
- What gain or income do Gail and John recognize on the exchange?
- What is Titan’s basis in the property transferred by Gail and Jane?
- How does Titan treat the value of the accounting services rendered by John?
B.
Jerome Howard exchanges property with a basis of $300,000 and a fair market value of $900,000 for 70% of the stock of Stooges Corporation. The other 30% of the stock is owned by Jules White who acquired his stock several years ago.
You are a CPA in private practice and Jerome comes to you and asks you whether he must report a gain on the transfer on his tax return.
Please draft a letter to your client Jerome and an associated memo to the tax files with documentation for your response.
Your memo to the files should incorporate the following sections:
FACTS
ISSUES
LAW & ANALYSIS
CONCLUSION
C.
- Some say that the Tax Code favors the use of debt over equity when capitalizing a corporation.
Please state whether or not you agree with this proposition and fully explain your rationale.
- Please state whether or not you agree with the assertion that in terms of justification and effect, Section 351 incorporations and Section 1031 like-kind exchanges are much alike.
Is this question part of your Assignment?
We can help
Our aim is to help you get A+ grades on your Coursework.
We handle assignments in a multiplicity of subject areas including Admission Essays, General Essays, Case Studies, Coursework, Dissertations, Editing, Research Papers, and Research proposals
Header Button Label: Get Started NowGet Started Header Button Label: View writing samplesView writing samples