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Flashcards in REG 16 Deck (15):
1

If your. not a merchant and you r buyer pays but then wants to pick it up later, but the house burns down and destroys it,. What happens?

Parties have no agreement about risk of loss, no carrier and goods aren't in possessio of bailee then it's when seller tends delivery.

Tender deliver is key if you are not a merchant.

2

UCC risk of loss is usually placed on party who is in best position to prevent loss.

I can barely keep my eyes ofpen.

3

UCC never assigns a risk of loss base on what?

Title

4

If someone buys something from you and they pay for it and you give it to them, but they ask you to hold it and the place burns down then what happens as far as title or loss.

If your not a merchant the buyer is SOL
If you are a merchant then the title wouldn't pass until you actually took possession.

5

Can you sue for specific performance under ucc?

Yes also recover goods (capture)
Purchase substitute goods (cover)
No punitive damages under UCC.

6

IN A LIQUIDATING DISTRIBUTION OF A C CORPORATIONS WHOLLY OWNED SUBSIDIARY IS ANY GAIN RECOGNIZED BY THE PARENT.

NO watch out for adjusted basis fair market value, confusion because you think it's the same as an s corp distribution.

7

What's the deal about recognizing gain loss of a liquidating distribution from a related subsidiary

What's the percentage that tells you what to do

If you own more than 80% no gain or loss.

8

Is a net capital loss deductible for a c corporation?

No it may only be used to offset capital gains.

9

For a C corp if there aren't enough gains to offset capital losses, what is the carryback/foward period.

Back three years, forward 5 years.
No $3,000 deduction as with individuals against ordinary income.

10

If they ask for taxable income can it be a negative number?

Yes apparently this is a synonym for NOL. Then again the question might be FUBAR.

11

Net Operating Loss Definition for C Corps

Excess of deductions over gross income with certain modifications.
DRD - If there's a loss the 70% limit on taxable income does't apply (WTF) this is talking about the % taxable income versus the 70% DRD deduction calculation

12

Net Operating Losses or Just in General When it comes to the DRD add it into the gross income first before you take the deduction. See back of Card for Example

Gross Income 70,000
Dividends rec'd from a less than 20% 45000
Expenses 90000

Question 925 - I made the mistake here of just subtracting 70% of the dividend and the expenses from the 70,000. Needed to add in the 45,000

13

Need to memorize what the M-1. Ques. 929
Asking what needs to be added back into book income
1.
2.

1. Federal Income Tax Expense
2. Goodwill Amoritization the tax code allows 20 years but in this question the book used 40 years

14

When a partner assumes a liability for the partnership (or a portion of it because someone contributes property) what happens to his/her basis.

INCREASES!!! Not decreases. It only decreases for the person who transfers the liability, but then you have to increase their basis by their proportionate share.

15

As the partnership liquidates debt, does it decrease basis?

It decreases basis, but only in proportion to percentage owned.
jQues 1299 11.2.59