...1. a) $0 b) 6,000 – [(25÷50)*2,000] = 6,000 – 1,000 = $5,000 c) 2,000 – [(25÷50)*2,000] = 2,000 – 1,000 = $1,000 2. a) $6,000 b) $0 c) $2,000 3. 80% * (50/100) = 40% 25/75 = 33.3% 40 % > 33.3% Passes 80% test After Redemption: 25/75 = 33.3% 33.3% < 50% Passes 50% test Both tests passed Qualifying Redemption a) $0 b) 6,000 – [(25÷50)*2,000] = 6,000 – 1,000 = $5,000 c) 2,000 – [(25÷50)*2,000] = 2,000 – 1,000 = $1,000 4. 80% * (60/100) = 48% 45/85 = 52.9% 48 % < 52.9% Fails 80% test After Redemption: 45/85 = 52.9% 52.9% > 50% Fails 50% test Both tests failed Not a Qualifying Redemption a) $6,000 b) $0 c) $2,000 5. 80% * (60/100) = 48% 35/75 = 46.6% 48 % > 46.6% Passes 80% test After Redemption: 35/75 = 46.6% 46.6% < 50% Passes 50% test Both tests passed Qualifying Redemption a) $0 b) 6,000 – [(25÷60)*2,000] = 6,000 – 833.33 = $5,166.67 c) 2,000 – [(25÷60)*2,000] = 2,000 – 833.33 = $1,166.67 6. a) 100,000 – 25,000 = $75,000 b) 100,000 – 26,000 = $74,000 7. a) 300,000 – 100,000 = $200,000 Gain b) 300,000 – 20,000 = $280,000 Capital Gain c) $300,000 8. a) 300,000 – 100,000 = $200,000 Gain b) 250,000 – 20,000 = $230,000 Capital Gain c) $250,000 9. Parent RZ Corporation Sub Spring Corporation a) No Gain or Loss Recognized b) No Gain or Loss Recognized c) $100,000 d) It goes away e) 600,000 + 1,000,000 = $1,600,000 10. a) 110,000 – 60...
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