For purposes of control for Section 351, ownership of ______% or more of the voting stock is required.Because a corporation pays tax at the entity level and corporate dividends are NOT deductible, corporate income suffers______ taxation.Marcie and her husband, Franklin, each own 50 shares of Chestnut, Inc. Sally, Marcie's old high school friend, owns the remaining 50 shares (150 total shares outstanding). Chestnut redeems 40 of Marcie's shares for $38,000 (her adjusted basis was $5,000). What is the tax treatment of the redemption to Marcie?Current E&P and accumulated E&P are both positive. The order in which a distribution is deemed to come from E&P is:Joshua Corp. distributes land to its shareholder, Eddie. The land has a fair market value of $25,000 and is subject to a mortgage of $40,000. Joshua Corp.'s basis in the land is $1,000. How much gain does Joshua Corp recognize on the distribution of the land?Abby contributes property to a corporation in exchange for stock that results in a deferred loss of $4,000. Abby is going to__________ her basis in the stock by the deferred loss.Which of the following qualify as property under Section 351? (Check all that apply.)Guenther Corporation has two shareholders: Gene and Asami. Guenther distributes a stock dividend to Asami only. The stock dividend is:Mitt redeems his entire ownership of stock in Dawn Key Corp. However, Mitt's sons, Rick and Newt, own all of the remaining shares of Dawn Key Corp. after the redemption. What are the requirements that Mitt must meet to waive the family attribution rules for this redemption? (Check all that apply.)Greta contributes property to form Unity Corp. and receives all 100 shares of Unity. A year later, Bjorn contributes property and receives 20 shares of Unity (total 120 shares of Unity outstanding). Which shareholder will receive deferral treatment under Section 351?Glenda Goodwich contributes property with a basis of $20,000 and a fair market value of $100,000 to form WOZ Corporation in exchange for 100 shares of WOZ common stock with a fair market value of $80,000 and $20,000 cash. This contribution will result inWhen noncash property subject to liabilities is distributed by a corporation to shareholders, the amount of the distribution isTrue or false: Under no circumstances will a shareholder who has shares redeemed be able to treat the stock redemption as an exchange unless the shareholder meets the bright line change-in-stock-ownership tests.The amount of a corporate distribution to a shareholder of property, other than cash, is determined by its:Macadamia Corp. redeems 60 shares of common stock from Patty in exchange for $50,000. Patty held 100 shares of the 150 total outstanding shares in Macadamia for the past 5 years. Patty's basis in the 60 redeemed shares was $10,000. Assuming Patty has a 15% tax rate on both dividends and long-term capital gains, what is Patty's tax liability from this redemption?Greg transfers property worth $100,000 (basis = $5,000) to a corporation and receives a note from the corporation valued at $100,000. Greg's realized gain or loss on this transaction isA complete redemption of all the stock of the corporation owned by a shareholder is always treated as a(n):Aztec Corp. is calculating its current E&P and is considering the following items:Federal income taxes paid $50,000Political contributions to the state governor's race $5,000Fines and penalties $1,000Ordinary and necessary business expenses $50,000Salaries paid to owner/employees $30,000Which of the items above should Aztec deduct when adjusting its taxable income to get to E&P? (Check all that apply.)Rebellion, Inc. distributes property worth $20,000 (adjusted basis = $5,000) to its shareholder, Jerry. Rebellion's current E&P was $100,000 at the time of distribution. What is Jerry's basis in the property received?Under family attribution, stock ownership by which of the following family members would be attributed to the shareholder? (Check all that apply.)
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