How is the transfer of liabilities in a property transaction generally treated for tax purposes? How is a transfer of liabilities generally treated in a § 351 transaction? What exceptions could arise to this usual treatment in a § 351 setting? Your assignment should be a paper 2-3 pages long, not including the required title and reference pages. Adhere to the CSU-Global Guide to Writing and APA. Include at least three scholarly sources (you may use the recommended readings) to support your answers. The CSU-Global Library is a good place to find these sources. Remember to use in-text citations as appropriate and to include your sources in your reference page.
How is the transfer of liabilities in a property transaction generally treated for tax purposes? How is a transfer of liabilities generally treated in a § 351 transaction? What exceptions could arise to this usual treatment in a § 351 setting? Your assignment should be a paper 2-3 pages long, not including the required title and reference pages. Adhere to the CSU-Global Guide to Writing and APA. Include at least three scholarly sources (you may use the recommended readings) to support your answers. The CSU-Global Library is a good place to find these sources. Remember to use in-text citations as appropriate and to include your sources in your reference page.
Related questions
Assignment Choice #1: Earnings and Profits
For this assignment, read the scenario below and then evaluatethe impact of E&P.
ABC Corporation has current E&P of ($200,000). E&P atthe beginning of the year was ($100,000). ABC Corp. makes adistribution of $350,000 to its sole shareholder on the least dayof the year. The shareholder had a tax basis of $50,000. Determinethe following (make sure that you show all calculations):
How much of the distribution is treated like a dividend to theshareholder?
After the distribution takes place, what is the shareholder'stax basis in the ABC Corp. stock after the distribution?
What is the balance in E&P for ABC Corp. the day after thedistribution?
Discuss why E&P is measured. If E&P was not measured inthe scenario presented above, what are the potential problems?
Requirements:
Back up your discussion with research from two scholarly sources(you may not use the course textbook to fulfill thisrequirement).
Your responses to the questions above as well as your analysisshould be 4-5 pages in length not counting the title and referencepages, which you must include.
Your paper must be formatted according to the CSU-GlobalGuide to Writing and APA Requirements.
Review the grading rubric to understand how you will be gradedon this assignment. Reach out to your instructor if you havequestions about the assignment.
Bellow Is what I have so far!!!!!!!!!
No distribution is to be treated as dividend as there was noearnings on which dividend could be paid. | ||||||||||
As there was no taxable dividend so the tax basis would be$50000 | ||||||||||
Balance In E & P after distribution = -200000-100000-350000= -$650000 | ||||||||||
E & P is used to measure the ability of a corporation to paydividends. It is helpful in measuring the nontaxable portion ofdistribution. | ||||||||||
If E & P would have not been measured then: | ||||||||||
Non taxable portion of dividends would have not been known. | ||||||||||
Stock dividends could have been subject to tax. | ||||||||||
For thoes of you who asked about what sources to usethere are no specific sources. what you see is all my instructorgave me | ||||||||||
