Andy donated the following properties on October 31, 2021: Car—recently purchased for P800,000; fair market value at the time of donation P700,000. 10,000 preferred shares, traded in the stocks exchange, par value, P20.00/share; mean between the highest and lowest quotation price, P15.00/share. 5,000 ordinary shares, not traded in the stocks exchange, par value, P5.00/share; book value P6.00/share; fair market value, P4.00/share. 10,000 preferred shares, not traded in the stocks exchange, par value, P10.00/share: book value, P15.00/share

Andy donated the following properties on October 31, 2021: Car—recently purchased for P800,000; fair market value at the time of donation P700,000. 10,000 preferred shares, traded in the stocks exchange, par value, P20.00/share; mean between the highest and lowest quotation price, P15.00/share. 5,000 ordinary shares, not traded in the stocks exchange, par value, P5.00/share; book value P6.00/share; fair market value, P4.00/share. 10,000 preferred shares, not traded in the stocks exchange, par value, P10.00/share: book value, P15.00/share

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 1BD

See similar textbooks

Similar questions

Donations of Assets and Shares Marasigan Corp. received the following items as donations during 2018: Mar. 21 Arias Realty gave the corporation 5 hectares of land valued at P6,000,000. Marasigan agreed to build a distribution warehouse on the property and to employ at least 50 local residents. Apr. 30 A shareholder donated 10,000 shares of Marasigan P200 par ordinary shares. The stock was selling for P425 per share on Apr. 30. Bobadilla Holdings donated a mobile office, which was moved to the donated land and used as a temporary office. An independent appraisal established the value of the mobile office at P675,000. June 25 July 15 4,000 of the ordinary shares received as a donation on Apr. 30 were sold for P1,820,000. Required: 1. Prepare journal entries to record the transactions related to the donations. 2. Compute the amount of donated capital that Marasigan Corporation would present on Dec. 31, 2018 statement of financial position.
H7. In 1980 John formed a farm business (corporation) by contributing a piece of farmland with an adjusted basis of $95,000 In exchange, he got 100 shares of stock, and was the only stockholder. Transaction pursuant to Section 1244. At the time of the transaction the farm was worth $140,000. In 1990 - John gifted 20 shares apiece to his two sons - Carl and Chris. These gifts at the time were valued at $27,000 each. John did not pay a gift tax on the shares. He wanted to reward his sons for their hard work as managers of the company and wanted to place some of the taxes of the business on them. Carl got bought out in exchange for a smaller field on the farm but was no longer involved in the family business. The field given to Carl was originally purchased for $10,000, and the present value is $12,000. Carl's shares were worth $12,000 at the time of the transfer. During the year of the transfer, the family farm earned $80,000. Questions: Perform the calculations if the transfer for…
On December 1, 2016, Buggy Corporation received a donation of 2,000 shares of its P50 par value ordinary shares from a shareholder. On that date, the share's market value was P350 per share. The stock was originally issued for P250 per share. By what amount would this donation cause the total shareholders' equity to decrease? а. Р 700,000 b. Р 500,000 с. Р 200,000 d. 0
Following are selected transactions in chronological order of Bayombong Company and its trustee in connection with a sinking fund. a. Cash contribution to the sinking fund, P1,000,000. b. Acquisition of securities at par by the trustee, P700,000. c. The trustee receives interest on the securities, P60,000. d. The trustee pays expenses of P30,000. e. The trustee sells the securities for P800,000 plus accrued interest of P10,000. f. The trustee pays bonds payable of P1,000,000 and interest of P100,000. g. The trustee remits the remaining cash to Bayombong Company. How much was remitted by the trustee to Bayombong Company?
X, resident citizen, had the following information for the year 2022:Gain from sale of office equipment, P20,000Gain from sale of land not used in business (selling price of P300,000), P100,000Gain from sale of shares of stock directly to the buyer, P50,000Gain from sale of shares of stock through the stock exchange (selling price, P200,000), P10,000Bad debt recovery, P50,000How much is the total capital gains tax?
Christopher bought 2,000 shares of a stock at P140.00 a share. A year later, he sold the stocks at P148.50 a share. How much money did he make on the sale excluding costs of buying and selling? Select one: O a. P280,000.00 O b. P297,000.00 c. P8,000.00 d. No answer e. P17,000.00
Mr and Mrs. Swerte made the following donations during the calendar year 2018 (common property unless otherwise stated): Date Donations January 15 To Fe, legitimate daughter, on account of her forthcoming marriage, 10,000 shares which are not traded in the stock exchange. The book value at the time of donation was P52 per share. To Juana, family friend of couple, on account of her birthday, P20,000. February 10 To Pilar, legitimate daughter, on account of her marriage on February 1, 2015, a piece of antique jewelry from the capital property of Mr. Swerte. The pawn value of the jewelry was P45,000. To Ernest, legitimate son, on account of her graduation, a piece of land costing P500,000. The fair market value per BIR at the time of adoption was P1,000,000. Its zonal value was P1,200,000. The piece of land had an unpaid mortgage of P100,000 which was assumed by the donee. To Lilian, Mrs Swerte's sister; on account of her forthcoming marriage, cash P150,000 September 4 To CPAR University,…
A donor gives $1000.00 shares in Apple stock and stipulates the proceeds of the stock that are not to be spent but held in perpetuity. Is this change in net assets with or without donor restrictions?
Problem #2 (20 points) Donations of Assets and Shares Marasigan Corp. received the following items as donations during 2018: Mar. 21 Arias Realty gave the corporation 5 hectares of land valued at P6,000,000. Marasigan agreed to build a distribution warehouse on the property and to employ at least 50 local residents. Apr. 30 A shareholder donated 10,000 shares of Marasigan P200 par ordinary shares. The stock was selling for P425 per share on Apr. 30. June 25 Bobadilla Holdings donated a mobile office, which was moved to the donated land and used as a temporary office. An independent appraisal established the value of the mobile office at P675,000. July 15 4,000 of the ordinary shares received as a donation on Apr. 30 were sold for P1,820,000. Required: Prepare journal entries to record the transactions related to the donations. Compute the amount of donated capital that Marasigan Corporation would present on Dec. 31, 2018 statement of…
27. G transferred $20,000,000 to Trust T. Trust T was an irrevocable trust which provided for income to individual I (G's friend) for 10 years, and the remainder to a qualified charity ("QC"). Assume the present value of the income interest was $5,000,000 at the time of the transfer, and the value of the trust (remainder interest) that eventually passed to I was $17,000,000. What is the amount of G's taxable gift? a. $0b. $3,000,000c. $5,000,000d. $20,000,000e. None of a-d is correct
Jerry Tasch’s will has the following provisions:∙ $150,000 in cash goes to Thomas Thorne.∙ All shares of Coca-Cola go to Cindy Phillips.∙ Residence goes to Kevin Simmons.∙ All other estate assets are to be liquidated with the resulting cash going to the First Church of Freedom, Missouri.Prepare journal entries for the following transactions:a. Discovered the following assets (at fair value): Cash . . . . . . . . . . . . . . . . . . . . $ 80,000Interest receivable . . . . . . . . . . . 6,000Life insurance policy . . . . . . . .300,000Residence . . . . . . . . . . . . . . . . 200,000Shares of Coca-Cola Company . . . . . . . . . . . . . . . . . 50,000Shares of Polaroid Corporation . . . . . . . . . . . . . . . . . 110,000Shares of Ford Motor Company . . . . . . . . . . . . . . . . 140,000 b. Collected interest of $7,000.c. Paid funeral expenses of $20,000.d. Discovered debts of $40,000.e. Located an additional savings account of $12,000.f. Conveyed title to the residence to Kevin…
[The following information applies to the questions displayed below.] Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $210,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock: Building Land Total FMV $ 78,750 183,750 $ 262,500 To equalize the exchange, Wiley Corporation paid Hermione $52,500 in addition to her stock. Gain or loss realized Gain or loss recognized a. What amount of gain or loss does Ramona realize on the formation of the corporation? What amount, if any, does Ramona recognize? Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. Adjusted Tax Basis $ 21,000 84,000 $ 105,000 $ $ 78,750 52,500