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Swan Corporation, a calendar year C corporation, had the following information for 2012: Net income per books (after tax) $174,700 Taxable income 195,000 Federal income tax per books 59,300 Cash dividend distributions 35,000 Unappropriated retained earnings, as of...

Tern Corporation, a calendar year C corporation, is solely owned by Jessica Ramirez. Tern’s only business since its incorporation in 2009 has been land surveying services. In Tern’s state of incorporation, land surveying can be performed only by a licensed surveyor....

Elizabeth, Rod, June, and Whit form Zelcova Corporation with the following consideration:   Basis toTransferor Fair MarketValue Number ofShares Issued From Elizabeth—       Personal services rendered to       Zelcova Corporation $...

Ron and Gail form Maple Corporation with the following consideration: Consideration Transferred   Basis toTransferor Fair MarketValue Number ofShares Issued From Ron—       Cash $ 50,000 $ 50,000   Installment obligation 140,000 250,000 30...

Jane, Jon, and Clyde incorporate their respective businesses and form Starling Corporation. On March 1 of the current year, Jane exchanges her property (basis of $50,000 and value of $150,000) for 150 shares in Starling Corporation. On April 15, Jon exchanges his...

Rhonda Johnson owns 50% of the stock of Peach Corporation. She and the other 50% shareholder, Rachel Powell, have decided that additional contributions of capital are needed if Peach is to remain successful in its competitive industry. The two shareholders have agreed...

Gold, Inc., is an accrual basis taxpayer. In 2012, an employee accidentally spilled hazardous chemicals on leased property. The chemicals destroyed trees on neighboring property, resulting in $30,000 of damages. In 2012, the owner of the property sued Gold, Inc., for...

Compute Mary’s income or deductions for 2012 using (1) the cash basis and (2) the accrual basis for each of the following: a. In May 2012, Mary paid a license fee of $1,200 for the period June 1, 2012, through May 31, 2013. b. In December 2012, Mary collected $10,000...

How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2012, customers had made valid claims for $600,000 that were not paid...