Please answer fully, typed if possible and show all work and relevant citations 3) Parent Corporatio

Please answer fully, typed if possible and show all work and relevant citations 3) Parent Corporatio

Please answer fully, typed if possible and show all work and relevant citations 3) Parent Corporation purchased 75% of Subsidiary Corporation in 2000. Subsidiary's balance sheet shows the following amounts: Basis     Value Demand deposit              20k       20k IBM stock                      30k       50k Parldng Lot                    5k         30k Building                        0          100k Mortgage                       (15k)     (15k) Subsidiary has a net operating loss carryover in 2006 of $7,000 and earnings and profits of $22,000. The Subsidiary redeemed in 2003 the 25% shareholder Roy Rogers. The Subsidiary distributed the IBM stock for his 25% interest. In 2006 Subsidiary adopts a plan of liquidation. A What are the tax consequences to Roy in 2003 (i.e. realized, recognized gain or loss and character)? B Does the Subsidiary recognize gain or loss on the redemption and the C Liquidation (i.e. realized, recognized and character)'? D What is the Parent's basis for the assets received? E What happens to the Subsidiary's NOL and Earnings and Profits? In your analysis give computations and IRC Secs.

Please answer fully, typed if possible and show all work and relevant citations 3) Parent Corporation purchased 75% of Subsidiary Corporation in 2000. Subsidiary's balance sheet shows the following amounts: Basis Value Demand deposit 20k 20k IBM stock 30k 50k Parldng Lot 5k 30k Building 0 100k Mortgage (15k) (15k) Subsidiary has a net operating loss carryover in 2006 of $7,000 and earnings and profits of $22,000. The Subsidiary redeemed in 2003 the 25% shareholder Roy Rogers. The Subsidiary distributed the IBM stock for his 25% interest. In 2006 Subsidiary adopts a plan of liquidation. A What are the tax consequences to Roy in 2003 (.e. realized, recognized gain or loss and character)? B Does the Subsidiary recognize gain or loss on the redemption and the C Liquidation (i.e. realized, recognized and character)'? D What is the Parent's basis for the assets received? E What happens to the Subsidiary's NOL and Earnings and Profits? In your analysis give computations and IRC Secs.

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