Lily and Mary owed Jake P500,000.00 for advancing their equity in a corporation they joined as incorporators. Lily and Mary bound themselves solidarily liable for the debt. Later, Lily and Jake became sweethearts so Jake condoned the debt of P500,000.00. May Lily demand from Mary P250,000.00 as her share in the debt? Explain.
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Lily and Mary owed Jake P500,000.00 for advancing their equity in a corporation they joined as incorporators. Lily and Mary bound themselves solidarily liable for the debt. Later, Lily and Jake became sweethearts so Jake condoned the debt of P500,000.00.
May Lily demand from Mary P250,000.00 as her share in the debt? Explain.
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- María and Bob form Robin Corporation. María transfers property worth $100,000 with a basis of $35,000 for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $40,000 with a basis of $8,000 and legal services worth $4,000 in organizing the corporation. If there is no gain or loss, enter "0" for the amount. a. What gain or income, if any, will the parties recognize on the transfer? María recognizes María has a basis of $ b. What basis do María and Bob have in the Robin Corporation stock? of $ 1 Robin Corporation has a basis of $ Bob recognizes and Bob has a basis of $ c. What is Robin Corporation's basis in the property and services it received from María and Bob? in the property Bob transferred. in the stock. in the property María transferred and a basis ofMaría and Bob form Robin Corporation. María transfers property worth $420,000 with a basis of $150,000 for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $165,000 with a basis of $30,000 and legal services worth $15,000 in organizing the corporation. If there is no gain or loss, enter "0" for the amount. a. What gain or income, if any, will the parties recognize on the transfer? María recognizes no gain or loss Feedback of $ Bob recognizes ordinary income of $ Check My Work Section 351 is mandatory if a transaction satisfies the provision's requirements. The three requirements for nonrecognition of gain or loss under § 351 are that (1) property is transferred (2) in exchange for stock and (3) the property transferors are in control of the corporation after the exchange. b. What basis do María and Bob have in the Robin Corporation stock? María has a basis of $ Feedback Check My Work Incorrect , and Bob has a basis of $ 420,000 X in the stock. c. What is Robin…Facts: Miya and Maria owed Mark P500,000.00 for advancing their equity in a corporation they joined as incorporators. Miya and Maria bound themselves solidarily liable for the debt. Later, Miya and Mark became sweethearts so Mark condoned the debt of P500,000.00. Question: May Miya demand from Maria P250,000.00 as her share in the debt? Explain.
- Sherry transfers each of the following gifts during 2023. Sherry is not married. Identify the taxable gift amount for each item (before any exclusion) Gift Stock to her favorite charity with FMV of $40,000 and basis of $20,000 Cash to her daughter of $25,000 $200,000 to an irrevocable trust to distribute annually to her granddaughter $25,000 to pay for medical expenses for her mother The amount included in Taxable GiftsConan and Andy decide to form a new corporation, LN Corp. Conan contributes property with a basis of $10,000 and a fair market value of $18,000 in exchange for five shares of LN stock and $13,000 in cash, which LN borrows from a bank to finance. Andy contributes property with a basis of $35,000 and a fair market value of $80,000 in exchange for 80 shares of LN stock. How much taxable gain or loss will Conan recognize as a result of the transaction? What basis will Conan take in the LN stock he receives?Abel's employer provides Abel with a group life insurance benefit. Abel irrevocably transferred the group life insurance policy and all of the attendant incidents of ownership to his brother, Cain. Cain changed the beneficiary on the policy to himself. The $50,000 policy was paid to Cain upon Abel's death. How much is includible in Abel's gross estate?
- Reese and Jake engage in a like-kind exchange. Reese transfers real estate with a fair market value of $500,000 and an adjusted basis of $200,000 to Jake. Jake transfers real estate worth $700,000 and an adjusted basis of $250,000, plus a $200,000 mortgage on the property, to Reese. What is Jake's potential or deferred gain before and after the transaction? $450,000 potential gain before the transaction; $50,000 potential gain after the transaction. $250,000 potential gain before the transaction; $50,000 potential gain after the transaction. $450,000 potential gain before the transaction; $250,000 potential gain after the transaction. $250,000 potential gain before the transaction; $200,000 potential gain after the transaction. Income TaxMaría and Bob form Robin Corporation. María transfers property worth $130,000 (basis of $45,500) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $52,000 (basis of $10,400) and for legal services (worth $5,200) in organizing the corporation. If there is no gain or loss, enter "O" for the amount. a. What gain or income, if any, will the parties recognize on the transfer María recognizes no capital gain or loss of $............. Bob. recognizes ordinary income of $...? b. What basis do María and Bob have in the Robin Corporation stock? María has a basis of $....., and Bob has a basis of $..............the stock. c. What is Robin Corporation's basis in the property and services it received from María and Bob? Robin Corporation has a basis of $............ the property María transferred and a basis of $........ in the property Bob transferred.aRhonda owns an office building that has an adjusted basis of $45,000. The building is subject to a mortgage of $20,000. She transfers the building to Miguel in exchange for $15,000 cash and a warehouse with an FMV of $50,000. Miguel assumes the mortgage on the building. Required: What are LaRhonda’s realized and recognized gain or loss? What is her basis in the newly acquired warehouse?
- María and Bob form Robin Corporation. María transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $15,000 (basis of $3,000) and for legal services (worth $165,000) in organizing the corporation. a. What gain or income, if any, will the parties recognize on the transfer? María recognizes no gain or loss X of $ a gift X of $ 165,000 ✓. b. What basis do María María has a basis of $ 0 X and Bob recognizes a gain and Bob have in the Robin Corporation stock? 150,000 X, while Bob has a basis of $ 45,000 X in the stock. ✓of $ c. What is Robin Corporation's basis in the property and services it received from María and Bob? Robin Corporation has a basis of $ Bob transferred. 150,000 X in the property María transferred and a basis of $ 15,000 X and has 30,000 X in the propertyEllie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary. Ellie pays 32,000 in premiums for the policy during her life. When she dies, Jason collects the insurance proceeds of 500,000. As a result, how much gross income does Jason report?