Fringetree Corp. reports a $96,000 net operating loss (NOL)…

Fringetree Corp. reports a $96,000 net operating loss (NOL) in 2021. If the company reports $110,000 of taxable income in 2022 (before the NOL deduction) and $74,000 of taxable income in 2023 (before the NOL deduction), what is its taxable income in those years after the NOL deduction?

Owen and Claudette formed Persimmon Inc. on May 1. Owen cont…

Owen and Claudette formed Persimmon Inc. on May 1. Owen contributed cash of $500,000 in return for 50 percent of Persimmon’s stock. Claudette contributed a building and land in return for 50 percent of the stock. The building had a fair market value of $180,000 and an adjusted basis (to Claudette) of $150,000. The land had a fair market value of $420,000 and an adjusted basis (to Claudette) of $500,000. In addition to stock, Persimmon paid Claudette $100,000 in cash. How much gain (loss) must Claudette recognize?