ZuoTi.Pro
Question

Jocelyn contributes land with a basis of $36,500 and fair market value of $54,750 and inventory...

Jocelyn contributes land with a basis of $36,500 and fair market value of $54,750 and inventory with a basis of $11,200 and fair market value of $16,800 in exchange for 100% of Zion Corporation stock. The land is subject to a $9,125 mortgage.

Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received.

The exchange (Is or Is not) tax-free under § 351 because the release of a liability (is or is not) treated as boot under
§ 357(a). As a result, Jocelyn has income of $_____ and a basis $ ______in her stock.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Selutibn Given data is bahof Jocelyn cotnlautes land wilt 26500 aud fair waiket value of s4750 entory with a Besis of aud I20tar bat amout of ealged Gain ealiged g0615 47 00 S32915 mediately af ter te transfer, saely has togeater dhan eos) of ouneghs

0 0
Add a comment
Know the answer?
Add Answer to:
Jocelyn contributes land with a basis of $36,500 and fair market value of $54,750 and inventory...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Jocelyn contributes land with a basis of $32,000 and fair market value of $48,000 and inventory...

    Jocelyn contributes land with a basis of $32,000 and fair market value of $48,000 and inventory with a basis of $14,200 and fair market value of $21,300 in exchange for 100% of Zion Corporation stock. The land is subject to a $8,000 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange_____ tax-free under § 351 because the release of a liability______ treated as boot under...

  • Exercise 18-21 (Algorithmic) (LO. 2) Jocelyn contributes land with a basis of $29,000 and fair market...

    Exercise 18-21 (Algorithmic) (LO. 2) Jocelyn contributes land with a basis of $29,000 and fair market value of $43,500 and inventory with a basis of $15,400 and fair market value of $23,100 in exchange for 100% of Zion Corporation stock. The land is subject to a $7,250 mortgage Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received If an amount is zero, enter "O". The exchange istax-free under $ 351 because the release of a...

  • Allie forms Broadbill Corporation by transferring land (basis of $125,000, fair market value of $775,000), which...

    Allie forms Broadbill Corporation by transferring land (basis of $125,000, fair market value of $775,000), which is subject to a mortgage of $375,000. One month prior to incorporating Broadbill, Allie borrows $100,000 for personal reasons and gives the lender a second mortgage on the land. Broadbill Corporation issues stock worth $300,000 to Allie and assumes the mortgages on the land. If an amount is zero, enter "0". a. What are the tax consequences to Allie and to Broadbill Corporation? Since...

  • 3. Venom owns land with an adjusted basis of $280,000 and a fair market value of...

    3. Venom owns land with an adjusted basis of $280,000 and a fair market value of $150,000. He sells the land for $115,000 to Phenom, Inc., a corporation in which he owns 60% of the stock. Determine the amount of realized and recognized gain or loss to Venom and the adjusted basis for Phenom. (5 points) 4. In 2018, Riot purchased 200 shares of Misanthropy Corporation stock for $24,000 on January 1, 2015. He sells 50 shares of the 200...

  • Jack and John exchange inventory and machinery with a combined basis of $100,000 and a fair market value of $500,000 to...

    Jack and John exchange inventory and machinery with a combined basis of $100,000 and a fair market value of $500,000 to ABC corporation in return for 100% of its stock. Prior to a §351 transaction, Jack and Jill agreed that Jack would sell Jill his 50% interest in ABC corporation within one week of obtaining the shares. How much gain or loss is recognized by Jack and John combined on the §351 exchange? A. $500,000 B. $200,000 C. $400,000 D....

  • Amy transfers property with a tax basis of $1,155 and a fair market value of $1,020...

    Amy transfers property with a tax basis of $1,155 and a fair market value of $1,020 to a corporation in exchange for stock with a fair market value of $895 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $125 on the property transferred. What is Amy's tax basis in the stock received in the exchange? Multiple Choice $1,155 $1,030 $930 $895

  • Rachelle transfers property with a tax basis of $825 and a fair market value of $1,300...

    Rachelle transfers property with a tax basis of $825 and a fair market value of $1,300 to a corporation in exchange for stock with a fair market value of $700 and $214 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $386 on the property transferred. What is the corporation's tax basis in the property received in the exchange? Multiple Choice $1,300 $1,039 $825 $700

  • 1. Assume there is no mortgage on the land, market value is $200 and the basis...

    1. Assume there is no mortgage on the land, market value is $200 and the basis of the land is $60.. The corporation borrows $5 from a bank and gives the $5 to W along with 100% of the stock in exchange for the land. a. What is the fair market value of the stock? (Think of the balance sheet, what are the assets and the liabilities?) b. What is the amount realized? What are the components of the amount...

  • Land A = Adjusted Basis = 190,000 , Stock Fair Market value = 10,000 Adjusted Basis...

    Land A = Adjusted Basis = 190,000 , Stock Fair Market value = 10,000 Adjusted Basis =4000 Land B = Fair Market value 240,000 What is realized Gain ? what is Recognized gain ? what is the basis for land B ?

  • An individual contributes two properties to a corporation in a 351 exchange. The first property has...

    An individual contributes two properties to a corporation in a 351 exchange. The first property has a basis of $50000, and fair market value of $70000. The second property has a basis of $80000, and fair market value of $85000. The second property is subject to a mortgage of $40000. The individual's stock basis after the transfer is: A.130000 B. 120000 C. 155000 D. 90000

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT