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Question on Reorganization Type D - Spin Off. Ultimately

Question on Reorganization Type D - Spin Off. Ultimately wanting to know the journal entry to make for the following.Existing Sub S is owned by two brothers. Existing Sub S - ABC is spinning off certain fixed assets and creating a subsidiary Sub S - XYZ. ABC to receive all of the stock of XYZ. One brother to exchange his stock in ABC and receive all of the stock in XYZ that ABC has.Net result is that ABC gives Fixed Assets and received the departing brothers stock in ABC. The departing brother received all of the stock in XYZ. XYZ has the Fixed Assets There is no debt or cash involved. It is just Fixed Assets and Sub S stock. The net book value of the Fixed Assets is $482K and the Fair Market Value is $884k.Unless I am missing something - I just need to know what the debit for ABC will be - to what account.

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Andy4712

Attorney

Doctoral Degree

476 satisfied customers
You gave me some good information last June on buying back

Hi....you gave me some good information last June on buying back some treasury stock in a C corp.....are you still available for some additional questions?Paul Doughty

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PDtax

Owner

Master's Degree

6,966 satisfied customers
Taxpayer is an S Corp. 2014 is the final year of the

Taxpayer is an S Corp. 2014 is the final year of the corporation. Shareholder A loaned $200,000 to S Corp in prior years. $120,000 of the loan has been used for shareholder losses in prior years. The beginning debt basis is $80,000 as of 1/1/14. The Scorp is insolvent and the ending balance sheet contains only the $200,000 of loans payable to Shareholder A at 12/31/14. 1 - Is the $200,000 cancelled debt excluded from the shareholder's income due to insolvency of the S Corp? 2 - If so, does the tax exemptincome increase the shareholder's basis in the debt and subsequently allow the shareholder a loss on the bad debt to the extent of the restored basis of $200,000?

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PDtax

Owner

Master's Degree

6,966 satisfied customers
I am contemplating selling approximately 25% interest in a

I am contemplating selling approximately 25% interest in a family farm corporation that my brother and I own with our kids or kid's trust back to the corporation as treasury stock. My 25% interest represents 100% of my personal interest while I still managemy children's trust which has approximately 11% ownership (at this time my children's trust would not be sold back to the corp). I am concerned about how IRS would treat the sale of my personal shares of 25%.....would they look at it as a long term capitalgain or am I faced with an ordinary dividend distribution? If it is an ordinary dividend distribution, then maybe you can give me some advice or how I can legally structure myself to receive cash for the sale of my stock in a different way?

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PDtax

Owner

Master's Degree

6,966 satisfied customers
I had stock certificates I want to cash in. On the back is

I had stock certificates I want to cash in. On the back is a template to fill out to sell your stock to some one else. This doesn't seem quite right if I am cashing them in. Also should I xerox the certificates in case they get lost in the mail?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,686 satisfied customers
Taxpayer is an S corp (Corp A) reporting their income on the

Taxpayer is an S corp (Corp A) reporting their income on the cash basis. The S corp is owned 100% by one individual. The business was discontinued at the end of 2013. Corp A's balance sheet at the end of 2013 has $66 cash, Common Stock of $5,000, Treasury Stock of $100, Deficit in Retained Earnings of $4,603 and a current year loss of $231.The $66 was distributed at the beginning of 2014 to the shareholder. What are the tax entries to close the books at 12/31/13, how is the negative equity reported on schedule M-2?Should a dissolution be filed with the IRS?Thank you.

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taxmanrog

Master's Degree

836 satisfied customers
I have a question about the correct journal entries for a partnership

I have a question about the correct journal entries for a partnership buying out one of its members. There is a 700k buyout in the form of a 4 year loan. The bought out partner has a negative partners account of 169k.I think I do the following:Treasury Stock 700Due to former partner 700Where is the goodwill?

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Megan C

Master's Degree

29,966 satisfied customers
Im trying to figure out the Cash Dividend on Common Stock.

Im trying to figure out the Cash Dividend on Common Stock. The Common stock on January 1 is issued 400,000 sharesThe Treasury Stock on January 1 is 40,000 sharesJan 4: Paid cash dividend of $.13 per share on the common stock. The dividend has been properly recorded when declared on December 1 of the preceding fiscal year for $46,800April 3: Issued 75,000 shares of common stock for $1,200,000June 6: Sold all Treasury Stock for $725,000July 1: Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per shareAug 15: Issued certificates for the dividend declared on July 1Nov 10: Purchase 25,000 shares of treasury stock for $500,000Dec 27: Declared a $0.16-per-share dividend on common stockI have figured out everything to insert into the Journal Entries, including the stock dividend, but no matter what I try, the Cash dividend for Dec 27 doesn't seem to work. How can I figure out the outstanding shares?

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Manal Elkhoshkhany

Foundation classes for MBA

9,262 satisfied customers
I recently purchased 66% of an S-corp from someone who was

I recently purchased 66% of an S-corp from someone who was retiring. In quickbooks for the company it shows contributed capital of $176,000 from that owner who just retired. It is being shown as equity on the balance statements. Does this stay on the books indefinitely?I need to give a balance statement to our bank and I think this will not give an accurate portrayal of our finances and responsibilities.

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WebCPA

Manager

Bachelor's Degree

204 satisfied customers
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