Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to Swift...
Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to Swift Corporation for 90% of the stock. The property is subject to a liability of $60,000, which Swift assumes.
If an amount is zero, enter "0".
a. What is the basis of the Swift stock to Adam? Adam recognizes a gain of $_____and the basis of the Swift stock to Adam is $____
b. What is the basis of the property to Swift Corporation? The basis of the property to Swift Corporation is $____.
Homework Answers
a. Adam recognizes a gain of $ 10,000 [ 60,000 - 50,000] and the basis of the Swift stock to Adam is $0.
b. The basis of the property to Swift Corporation is $60,000
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Adam transfers property with an adjusted basis of $50,000 (fair
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