ACCT 553 Week 7 Homework
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Twoyearslater , thecorporationsoldthemachineryfor $ 4,000 andthebuildingfor $ 110,000 . Themachineryhad accumulateddepreciationof $ 2,000 , andthebuildinghadaccumulateddepr eciationof $ 1,000 . Whatisthebuilt-in gainrecognizedon thesale ? Which ofthefollowingitemsmustbe separatelystated on Form1120S , U . S . IncomeTaxReturnforan S Corporation , ScheduleK-1 ? Forwhichofthefollowingentitiesistheowner ' sbasisincreasedbytheowner ' sshareofprofitsanddecreasedbythe owner ' sshareoflosses , butisnotaffectedbytheentity ' sbankloanincreaseso rdecreases ? Frankisa1 / 3shareholderin an Scorporation . Atthebeginningoftheyear , Frank ' sbasisin hisScorporationstock was $ 10,000 . Frank ' sshareoftheScorporationitemsofincomeincluded $ 35 , 000ofincomefromoperations ,$ 1,000 ofcharitablecontributions , and $ 1,000 ofcapitalgains . Duringtheyear , Frankalsocontributed $ 15,000ofadditiona l capitalandreceiveda $ 3,000 distributionfromtheScorporation . WhatisFrank ' sbasisattheendofthetaxy ear ? ================================================
ACCT 553 Week 7 Homework
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Chapters 10-11-12 1 . Please explain the distinction between a " realized " gain and a " recognized " gain . ( 5 pts ) 2 . Are there any limits to the deductibility of losses on sales and exchanges between related parties ? What code section defines this limitation ? ( 5 pts .)