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4. Bruce Banner and Natasha Romanoff form Sakaar Corporation with the following investments. Bruce transfers equipment...

4. Bruce Banner and Natasha Romanoff form Sakaar Corporation with the following investments. Bruce transfers equipment (basis of $60,000 and fair market value of $150,000), while Natasha transfers land (basis of $25,000 and fair market value of $120,000) and services rendered (worth $30,000) in organizing the corporation. Each is issued 25 shares in Sakaar Corporation. (12 points)

  1. What amount of gain or loss will Bruce realize and recognize on the transaction and what is his basis in the stock received?

  1. What amount of gain or loss with Natasha realize and recognize on the transaction and what is her basis in the stock received?

  1. What are the tax effects to Sakaar Corporation and what is Sakaar’s basis in each asset transferred?
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Answer #1

Bruce will incur the loss of$ 30000 on the transfer of equipment and the basis will be $ 25000

Natasha will gain of $ 30000 on the transfer of equipment and the basis will be $ 60000

The tax effect for Sarkar will be on the taxable gain on the basis

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