What are the Federal income tax consequences
What are the Federal income tax consequences to
A. Speculation Corp. B. Wise Corp. C. Mr. Glynn D. Ms. Carillo E. Ms. Schlinger
of a $10,000 cash dividend for each share of stock?
2. What are the financial management consequences of paying the $10,000 per share?
3. What are the Federal income tax consequences to A, B, C, D & E if B & C receive the $10,000 cash per share and D
& E each receive an undivided half interest in one of the apartment buildings?
4. Which apartment building would be better for minimizing Federal income taxes on the income from the apartments?
5. What would be Ms. Carillo’s and Ms. Schlinger’s basis in the one-half interest in the apartment building?
6. From a Federal income tax point of view, what type of property would the apartment building be to Ms. Carillo and
Ms Schlinger?