The Polk Partnership balance sheet (cash method) includes the following assets on December 31, 2025. James, a 1/3 partner, has an adjusted basis of $90,000 for his partnership interest. If James sells his entire partnership interest to Sarah for $100,000 cash, what is the amount and character of James’s gain or loss from the sale?      Basis FMV   Cash $ 180,000 $ 180,000   Accounts receivable -0- 60,000   Land     90,000   120,000       Total $ 270,000 $ 360,000   

Martin has a 30% interest in the Van Buren Partnership and receives a guaranteed payment of $30,000. In 2025, Van Buren reports ordinary income of $25,000 and capital gains of $60,000 before taking into account Martin’s guaranteed payment. What is the amount and character of all income or loss that Martin must report as a result of partnership activities?

Grover transferred property with a basis of $200,000 and a fair market value of $310,000 to Cleveland Corporation in exchange for stock with a fair market value of $160,000 and $100,000 in cash in an exchange that qualifies for §351. Cleveland Corporation assumed a liability of $50,000 on the property. What is the gain realized by Grover?

John, Abigail and Thomas organized Adams Corporation with authorized voting common stock of $100,000. John received 10% of the capital stock in payment for organizational services that he rendered for the benefit of the newly formed corporation. John did not contribute property to Adams. Abigail and Thomas transferred property in exchange for stock as follows: Abigail – $5,000 A/B; $20,000 FMV; 20% of Adams stock acquired Thomas – $60,000 A/B; $70,000 FMV; 70% of Adams stock acquiredWhat amount of gain did Thomas recognize from this transaction?

Tyler Corporation has income from operations of $192,000, a dividend from a 5% owned corporation of $88,000, business expenses of $168,000 and a dividend received deduction of $44,000. Tyler makes cash contributions of $25,000 to charitable organizations. What is Tyler Corporation’s charitable contribution deduction for the current year?

Taylor Corporation reports taxable income of $700,000 on its tax return. Given the following information from the corporation’s records, determine Taylor Corporation’s net income per books.Deduction for federal income taxes – $240,000Depreciation claimed on tax return – $135,000Depreciation reported on the financial accounting books – $75,000Life insurance proceeds on death of corporate officer – $100,000

Martin transfers an asset ($200,000 FMV; $140,000 A/B) to Van Buren Corporation in a transaction that qualifies under §351. Martin receives Van Buren stock (FMV of $180,000) and Johnson Inc. stock ($20,000 FMV; $10,000 A/B). Van Buren Corporation must recognize

Under a plan of complete liquidation, Fillmore Corporation distributes land ($400,000 FMV; $300,000 A/B) to Millard, a 25% shareholder. Millard has a $200,000 basis in his Fillmore stock. The land is inventory in the hands of Fillmore Corporation. Fillmore Corporation must recognize

Jackson Corporation has gross profits on sales of $370,000 and deductible business expenses of $290,000. In addition, Jackson has a capital gain of $10,000 and a capital loss of $17,000. Jackson Corporation’s taxable income is

In 2025, Grant Corporation has a net operating loss of $400,000. In 2026, Grant reported taxable income (before any NOL carryovers) of $450,000. What is Grant Corporation’s 2026 taxable income?