ACCT 580- Advanced Taxation

Research Exercise #4: Reorganizations & Related Corporations

Instructions:

To complete this assignment, you need to use the CCH Tax Research Network, available on  the CWU Library network:

  1. You must be logged into the CWU network (click here for help).

  2. You should click on this link to the CCH tax service with your right mouse button and have the CCH service open in a new window. Then you can use the service to find the answers and the form below to submit your answers.

  3. To use the CCH Tax Research Network to answer these questions:

    -Click on the Enter button on the first web page  
    -Click on the Federal tab on the main page of the CCH Tax Research Network  
    -Select the appropriate CCH features/resources for the exercise.  

Purpose:

The purpose of this exercise is to introduce you to the use of CCH for the purpose of finding and interpreting:

  1. The sections of the Internal Revenue Code (IRC) that cover controlled corporations and corporate reorganizations;

  2. The sections of the Internal Revenue Regulations (IRR) related to those sections; and

  3. Revenue rulings and court cases related to those sections.

 

Last Name:  

 First Name:  

 

CCH Search Section Document to find: Enter your answer:
Standard Federal Income Tax Reporter
1. Briefly explain what §1501 allows.
2. Briefly explain what §1502 allows.
3. Briefly explain what §1.1502-76 requires with respect to the taxable year of and items included in a consolidated return.
4. Briefly explain the issue addressed by Rev. Rul. 72-258.
5. Briefly explain how Rev. Rul. 72-258 was used by the court in the case of Davis Bros. Restaurant, Inc., (60 TC 525).
     
Standard Federal Income Tax Reporter
6. Briefly list the three main conditions under §355 that allow a distributee to avoid the recognition of gain or loss on the distribution of stock of a controlled corporation.
Refer to Rev. Rul. 77-11 for questions 7-10.
7. What (not how much) were corporation X's assets immediately after the transfer to corporation Z?
8. What  (not how much) were corporation Y's assets immediately after the transfer to corporation Z?
9. How did the assets owned by individuals A and B change as a result of the entire transaction?
10. What was Z's basis in the assets that it received from X and Y?

    
When you select Submit, your answers will be submitted to a database for grading by me.
The confirmation page that opens will be the only confirmation that you receive.

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Ronald R. Tidd, Ph.D., CPA
509.963.2466
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