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Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $163,400 and fair market value...

  1. Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $163,400 and fair market value of $245,100). Simon invests $196,080 of cash. They each receive 100 shares in Ion Corporation, worth $196,080, but Yvonne also receives $49,020 in cash from Ion.

    Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock.

    Ion Corporation has a basis of $_____ in the equipment. Yvonne has a basis of $ ______for her stock and Simon has a basis of $_____ for his stock.

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Solution Ion Corportions. basis in the equipment = 163400 + 49020 = 212420 Yvonnes basis = 163400 Simons basis = 196080

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