Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bruno, an individual, is the sole shareholder of g

Bruno, an individual, is the sole shareholder of Green Corporation. On January 1, 2018, Bruno...

50.1K

Verified Solution

Question

Accounting

Bruno, an individual, is the sole shareholder of Green Corporation. On January 1, 2018, Bruno decided to liquidate Green Corporation. At the date of liquidation, Green Corporation had assets with a FMV of $2,500,000 and a basis of $1,800,000. Green Corporations earnings and profits at the date of liquidation were $2,000,000. Brunos basis in Green Corporation stock is $900,000.

a) (3 points) What are the tax implications to Green Corporation?

b) (3 points) What are the tax implications to Bruno (Assume tax rate of 20%)

c) (3 points) How would your answer change if Bruno was a C-Corporation instead of an individual?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Locate information on the procedure by which an individual tax payer can request a photocopy of...

Physics
1.2K views

an experiment on the specific heat of a metal a 0 20 kg block of...

Physics
1.2K views

Q 14 In the network shown below if 50 resistor is short circuited then value...

Basic Math
1.2K views

When using the Indirect method to complete the cash flows from operating activities section of...

Accounting
1.2K views

Fleming Corporation has two operating divisions-the Northeast Division and the Southwest Division. The...

Accounting
1.2K views

Prepare an income statement for Rex Manufacturing for the year ended December 31 using the...

Accounting
1.2K views

Swifty Corporation, having recently issued a $20,139,700,15-year bond issue, is committed to make annual sinking...

Accounting
1.2K views

1. As of December 31, 2014, Stoneland Company has assets of 3,500 and equity of...

Accounting
1.2K views

What is the UBIA of the following asset? A piece of machinery purchased for $4,000...

Accounting
1.2K views

! Required information [The following information applies to the questions displayed below) Trey Monson starts...

Accounting
1.2K views

If a products selling price is $110 per unit, the variable costs are $45 per...

Finance
1.2K views

QUESTION 8 The PetShop (PS) has sales of $398,600, costs of $254.800, depreciation expense of...