ACC 455-The holding company Port, Inc. is owned 50% by John

Week 4 – Discussion Questions Worksheet 1. The holding company Port, Inc. is owned 50% by John and 50% by Peter. The company invests in real estate bonds and stocks, land and buildings from different enterprises, including Omega, Inc.; Landside, Inc.; and Best Properties, LLC. In order to avoid personal holding company tax, Peter and John plan to liquidate Port, Inc. within the next quarter. Please consider the following questions with respect to this case:a. In which case would the open transaction doctrine apply to Port, Inc.?b. Can Port, Inc. change its market composition/activities to decrease personalholding company tax?2. Nancy owns 25% of Mayfair Corporation stock. She currently has $200,000adjusted basis. She is a cash basis accounting taxpayer. Mayfair has indicatedthat they will issue a year-end, $270,000 liquidating distribution to Nancy for year2016. This distribution will be paid on January 3, 2017a) What is the amount of gain or loss that Nancy will report in 2016?b) What about in 2017? Please explain in detail or provide calculations.c) How would your answer differ if Nancy was an accrual method accountingtaxpayer. 3. The Best of Boston, Inc. is a company that provides customized tourist services,such as charters and sightseeing tours in the city of Boston. The company isowned 75% by Linda Smith and 25% by her sister, Amy Smith. Linda hasrecently married and she is moving with her husband to New York City. As such,Linda and Amy have decided to liquidate the business. Linda will open a newbusiness, the Best of New York, once she is settled. She has decided to take twosmall vans that belong to Best of Boston, Inc. as her final distribution. Amy, onthe other hand, will keep the existing savings of $50,000. Please consider thefollowing questions with respect to this case:a. Assume you are Best of Boston’s accountant. Would you suggest an alternatestrategy to minimize or avoid liquidation tax?b. What gain or loss would Amy recognize?c. Would Best of Boston recognize a loss on the distribution of the two vans?

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Order your essay today and save 25% with the discount code: THANKYOUPlace Order
+