Corporate Formation,neorganization,and Liquidation

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Business Income,Deductions,and Accounting Methods
Property Acquisition and Cost Recovery
Property Dispositions
Entities Overview
Corporate Operations
Accounting for Income Taxes
Corporate Taxation: Nonliquidating Distributions
Corporate Formation,Neorganization,and Liquidation
Forming and Operating Partnerships
Dispositions of Partnership Interests and Partnership Distributions
S Corporations
State and Local Taxes
The Ustaxation of Multinational Transactions
Transfer Taxes and Wealth Planning

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Question 1

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Gain or loss is always recognized when realized for tax purposes.

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Question 2

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Generally,before gain or loss is realized for tax purposes,the taxpayer must engage in a transaction.

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Question 3

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In a tax-deferred transaction,the calculation of a taxpayer's tax basis in property received always begins with its cost to the taxpayer.

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Question 4

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Maria defers $100 of gain realized in a section 351 transaction.The stock she receives in the exchange has a fair market value of $500.Maria's tax basis in the stock will be $400.

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Question 5

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Control as it relates to a section 351 transaction is strictly defined to be 80 percent or more of the voting power of the stock of the corporation to which property is transferred.

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Question 6

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The definition of property as it relates to a section 351 transaction includes money.

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Question 7

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To meet the control test under section 351,taxpayers transferring property to a corporation must in aggregate own 80 percent or more of the corporation's voting stock and 80 percent of each class of nonvoting stock after the transfer.

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Question 8

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Gain and loss realized in a section 351 transaction will be recognized if the taxpayer receives boot in the exchange.

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Question 9

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A taxpayer must receive voting common stock to be eligible for deferral in a section 351 exchange.

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Question 10

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A taxpayer always will have a tax basis in boot received in a section 351 transaction equal to its fair market value.

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Question 11

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M Corporation assumes a $200 liability attached to property transferred to it by Jane in a section 351 transaction.In all cases,the assumed liability will be treated as boot received by Jane.

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Question 12

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Mandel transferred property to his new corporation in a section 351 transaction.Among the several properties transferred by Mandel was land with a fair market value of $200,000 and a tax basis of $250,000.In all cases,the corporation will always take a tax basis in the land of $200,000 to prevent the "built-in loss" from being transferred from Mandel to the corporation.

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Question 13

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Han transferred land to his corporation in a section 351 transaction.Han had held the land for two years prior to the transfer.The corporation will tack Han's holding period for the land.

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Question 14

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Type A reorganizations involve the transfer of assets of targets corporation via a merger or consolidation.

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Question 15

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Tax considerations are always the primary reason for structuring an acquisition.

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Question 16

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A section 338 transaction is a stock acquisition treated as an asset acquisition based on an election made by the acquirer.

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Question 17

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Continuity of interest as it relates to a tax reorganization focuses on the aggregate equity received by the shareholders of the target corporation in the transaction.

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Question 18

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The shareholders in the target corporation always receive a tax basis in the stock received from the acquirer equal to the stock's fair market value.

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Question 19

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The requirements for tax deferral in a forward triangular merger and a reverse triangular merger are the same.

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Question 20

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A stock-for-stock Type B reorganization will be tax-deferred to a target corporation shareholder as long as at least 80 percent of the consideration received is in the form of stock of the acquirer.

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