Note: use the following fact pattern for the next four quest…

Note: use the following fact pattern for the next four questions.   Lisa and Richard wish to acquire Acacia Corp., a C corporation. As part of their discussions with Tobias, the sole shareholder of Acacia, they examined the business’ tax accounting balance sheet. The relevant information is summarized as follows:   Fair value Adjusted basis Assets: Cash $30,000 $30,000 Equipment $70,000 $10,000 Building1 $260,000 $140,000 Land1 $410,000 $180,000 Total $770,000 $360,000 Liabilities: Payables $20,000 $20,000 Mortgage1 $150,000 $150,000 Total $170,000 $170,000   1 Mortgage is attached to the building and the land.   Tobias’ basis in the Acacia stock is $400,000. Lisa and Richard offer to pay Tobias $900,000 for his company.   How much gain or loss must Acacia recognize if the transaction is structured as a stock sale to Lisa and Richard?

Nicole transferred her minority interest in Mangrove Corp. b…

Nicole transferred her minority interest in Mangrove Corp. back to the corporation as part of a complete liquidation. In return for her stock, she received a pro rata distribution of land with a fair value of $250,000 and an adjusted basis (to Mangrove) of $400,000. Assuming the land is not disqualified property, Mangrove recognizes a ($150,000) loss on distribution of the land.

The 88 year old client with atrial fibrillation is on digoxi…

The 88 year old client with atrial fibrillation is on digoxin 0.125 mg per day without any adverse drug reactions. The client has already tried other medications for managing the atrial fibrillation but was switched to digoxin due to side effects from the other medications. Using the Beers criteria as a guide, what is your assessment of the use of digoxin?