Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. hilda corp is a c-corp, owned by a single sharehol

Hilda Corp is a C-Corp, owned by a single shareholder, Hilda. Hilda Corp owns a...

60.1K

Verified Solution

Question

Accounting

Hilda Corp is a C-Corp, owned by a single shareholder, Hilda. Hilda Corp owns a parcel of land that it has owned for some years, and Hilda would like to own the land directly. Hilda would like to understand the amount of tax that she and Hilda Corp will have to pay if the land is distributed to her.

Here are some additional facts:

The fair market value of the land is $5,000,000;

Hilda Corp has a tax basis in the land of $1,000,000;

Hilda Corp has current and accumulated earnings and profits before this transaction of $1,000,000;

The corporate tax rate is 21%;

The individual tax rate on ordinary income is 37%; and

The tax rate on dividend income and capital gains is 20%

Hilda's basis in her Hilda Corp stock is $300,000.

  1. How will Hilda Corp report this transaction on its tax return?
  2. How much tax will Hilda Corp pay, if any?
  3. How will Hilda report this transaction on her tax return (i.e. dividend, sale or exchange, not taxable or some combination)?
  4. How much tax will Hilda pay, if any?
  5. What is Hildas tax basis in the land?

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

Statistics
1.2K views

A restaurant tried to increase business on Monday night, by featuring a special $1.00 dessert menu....

Medical Sciences
1.2K views

Ben's lungs have emphysema. What is the passage of oxygen in his lungs and his body?

Physics
1.2K views

Please show work. Thank you!! Question 3: ) Air contains approximately 80% N2 and 20% O2. At STP, what...

Biology
1.2K views

Identify the structure at the white arrow

Physics
1.2K views

Two air filled capacitors are connected as shown The left capacitor is suddenly filled with...

Physics
1.2K views

charge q is placed outside it as shown in figure then incorrect statement is Di...

Geometry
1.2K views

Find the Reference Number t bar and the Terminal Point for each value of t...

Algebra
1.2K views

Does the series shown below converge or diverge Give a reason for your answer In...

Accounting
1.2K views

Video Magic, Inc. has the following information available for...

Accounting
1.2K views

Fill in the missing amounts in each of the eight case situations below. Each case...

Accounting
1.2K views

I need help with all three questions, please. Thank you! The shortcut for determining...

Accounting
1.2K views

THE I na 86 minutes remaining Question 4 Giraffe Company reported the following for...