Question

Required information The following information applies to the questions displayed below.) Ivan incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted bases: Inventory Building Land Total FMV $ 19,600 83,500 78,250 $181,350 Adjusted Basis $ 37,250 54,750 40,250 $132,250 The fair market value of the corporation's stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ivan. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What amount of gain or loss does Ivan realize on the transfer of the property to his corporation? Gain or loss realized

Answer 1

@ Ivan realizes a not gain of $49100 Computed as follows: a net gain of $99100 on this transfer, $ 181,350 tas market value of stock recolyed 32250 - Adjusted tax basis of the property transfered Gair realised 49100 6 recognize any 9 gain or loss on the transfer & 351 are met and no Iran doemot recognize any gain or le because the requirements of $351 are met boot & received in the exchange $ 132250. Ivani tax basic in the stock received is the olubstituted basis of the asset transferred . . The corporahon recorrer a Cakyover basis is the aret received from Ivan Inventory $37,250 Building $ 54,750 $ 40,250 Land Total 132256