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Brian transfers to Woodside Corporation property having a $33,000 adjusted basis and a $48,000 FMV in...
Brian incorporates his sole proprietorship as Fancy Corporation and transfers its assets to Fancy in exchange...
Brian incorporates his sole proprietorship as Fancy Corporation and transfers its assets to Fancy in exchange for all 100 shares of Fancy stock and five $12,000 interest-bearing notes. The stock has a(n) $120,000 FMV. The notes mature consecutively on the first five anniversaries of the incorporation date. The assets transferred are as follows: E: (Click the icon to view the asset information.) Read the requirements. Requirement a. What are the amounts and character of Brian's recognized gains or losses? Complete...
Jay owns 80% of Crystal Corporation stock. He transfers a business automobile to Crystal in exchange...
Jay owns 80% of Crystal Corporation stock. He transfers a business automobile to Crystal in exchange for additional Crystal stock worth $12,000 and Crystal's assumption of both his $2,500 automobile debt and his $5,500 education loan. The automobile originally cost Jay $22,000 and, on the transfer date, has a $10,500 adjusted basis and a $20,000 FMV. Read the requirements. Requirement a. What are the amount and character of Jay's recognized gain or loss? Jay realizes a C D and recognizes...
Jordan owns 80% of Ruby Corporation stock. He transfers a business automobile to Ruby in exchange...
Jordan owns 80% of Ruby Corporation stock. He transfers a business automobile to Ruby in exchange for additional Ruby stock worth $12,000 and Ruby's assumption of both his $3,500 automobile debt and his $1,500 education loan. The automobile originally cost Jordan $22,000 and, on the transfer date, has a $7,500 adjusted basis and a $17,000 FMV Read the requirements. Requirement a. What are the amount and character of Jordan's recognized gain or loss? Jordan realizes a D and recognizes a...
Without liquidating, Blue Corporation distributes equipment with a $90,000 adjusted basis and a $120,000 FMV to...
Without liquidating, Blue Corporation distributes equipment with a $90,000 adjusted basis and a $120,000 FMV to Sue. The equipment is subject to a $30,000 mortgage assumed by Sue. Blue has $320,000 of E&P (excluding the distribution) Requirements a. How much gain (if any) does Blue recognize on the distribution of the equipment? b. What distribution amount is taxable as a dividend to Sue? c. What is Sue's basis in the equipment? Requirement a. How much gain (if any) does Blue...
Kate transfers to her controlled corporation property with an adjusted basis of $10,000 in exchange for...
Kate transfers to her controlled corporation property with an adjusted basis of $10,000 in exchange for stock of the corporation with a fair market value of $8,000, $3,000 cash, and the assumption by the corporation of the indebtedness of Kate amounting to $4,000. Note: Type answers in the following format 1,000 no $ but use commas. a. What is Kate's realized gain? b. What is Kate's recognized gain? c. What is the corporation's basis for the property received? d. What...
In the current year, Mick Hank, and Lulu form Hades Corporation Mick contributes land (a capital...
In the current year, Mick Hank, and Lulu form Hades Corporation Mick contributes land (a capital asset) having a $125.000 FMV in exchange for 145 shares of Hades stock. He purchased the land three years ago for $140,000. Hank contributes machinery (Sec 1231 property purchased four years ago) having a $130,000 adjusted basis and a $75,000 FMV in exchange for 105 shares of Hades stock. Lulu contributes services worth $50,000 in exchange for 40 shares of Hades stock Read the...
Wilbur transfers property valued at $100,000 (basis = $70,000) to the Debold Corporation in exchange for...
Wilbur transfers property valued at $100,000 (basis = $70,000) to the Debold Corporation in exchange for 100 percent of its stock. What is Wilbur’s realized gain or loss on the transfer and his recognized gain or loss? What is his basis in the stock received? What is the corporation’s basis in the property received?
In the current year, Mick, Hank, and Lulu form Hades Corporation Mick contributes land (a capital...
In the current year, Mick, Hank, and Lulu form Hades Corporation Mick contributes land (a capital asset) having a $125,000 FMV in exchange for 145 shares of Hades stock. Ho purchased the land three years ago for $140,000 Hank contributos machinery (Sec. 1231 property purchased four years ago) having a $130,000 adjusted basis and a $75,000 FMV in exchange for 105 shares of Hades stock Lulu contributes services worth $50,000 in exchange for 40 shares of Hades stock Read the...
Cadence transfers property worth $500,000, basis of $100,000, to Alpha Corporation for 80% of the stock...
Cadence transfers property worth $500,000, basis of $100,000, to Alpha Corporation for 80% of the stock in Alpha, worth $400,000, and a long-term note, executed by Alpha Corporation and made payable to Cadence, worth $100,000. Cadence recognizes a gain of $100,000 on the transfer. None of the above Cadence recognizes a gain of $400,000 on the transfer. Cadence recognizes no gain on the transfer. Cadence recognizes a gain of $300,000 on the transfer.
Camille transfers property with a FMV of 1,200,000 and tax basis of 900,000 to a corporation in e...
Camille transfers property with a FMV of 1,200,000 and tax basis of 900,000 to a corporation in exchange for 100% of newco’s stcok with a fair market value of 850,000 and 350,000 cash camille will recognize a gain of :______ 28.) Same facts as above camille basis in her new stock is :______ 29.) same facts as above new cos basis in the building is______ Please answer all parts and show work
Brian incorporates his sole proprietorship as Fancy Corporation and transfers its assets to Fancy in exchange for all 100 shares of Fancy stock and five $12,000 interest-bearing notes. The stock has a(n) $120,000 FMV. The notes mature consecutively on the first five anniversaries of the incorporation date. The assets transferred are as follows: E: (Click the icon to view the asset information.) Read the requirements. Requirement a. What are the amounts and character of Brian's recognized gains or losses? Complete...
Jay owns 80% of Crystal Corporation stock. He transfers a business automobile to Crystal in exchange for additional Crystal stock worth $12,000 and Crystal's assumption of both his $2,500 automobile debt and his $5,500 education loan. The automobile originally cost Jay $22,000 and, on the transfer date, has a $10,500 adjusted basis and a $20,000 FMV. Read the requirements. Requirement a. What are the amount and character of Jay's recognized gain or loss? Jay realizes a C D and recognizes...
Jordan owns 80% of Ruby Corporation stock. He transfers a business automobile to Ruby in exchange for additional Ruby stock worth $12,000 and Ruby's assumption of both his $3,500 automobile debt and his $1,500 education loan. The automobile originally cost Jordan $22,000 and, on the transfer date, has a $7,500 adjusted basis and a $17,000 FMV Read the requirements. Requirement a. What are the amount and character of Jordan's recognized gain or loss? Jordan realizes a D and recognizes a...
Without liquidating, Blue Corporation distributes equipment with a $90,000 adjusted basis and a $120,000 FMV to Sue. The equipment is subject to a $30,000 mortgage assumed by Sue. Blue has $320,000 of E&P (excluding the distribution) Requirements a. How much gain (if any) does Blue recognize on the distribution of the equipment? b. What distribution amount is taxable as a dividend to Sue? c. What is Sue's basis in the equipment? Requirement a. How much gain (if any) does Blue...
Kate transfers to her controlled corporation property with an adjusted basis of $10,000 in exchange for stock of the corporation with a fair market value of $8,000, $3,000 cash, and the assumption by the corporation of the indebtedness of Kate amounting to $4,000. Note: Type answers in the following format 1,000 no $ but use commas. a. What is Kate's realized gain? b. What is Kate's recognized gain? c. What is the corporation's basis for the property received? d. What...
In the current year, Mick Hank, and Lulu form Hades Corporation Mick contributes land (a capital asset) having a $125.000 FMV in exchange for 145 shares of Hades stock. He purchased the land three years ago for $140,000. Hank contributes machinery (Sec 1231 property purchased four years ago) having a $130,000 adjusted basis and a $75,000 FMV in exchange for 105 shares of Hades stock. Lulu contributes services worth $50,000 in exchange for 40 shares of Hades stock Read the...
In the current year, Mick, Hank, and Lulu form Hades Corporation Mick contributes land (a capital asset) having a $125,000 FMV in exchange for 145 shares of Hades stock. Ho purchased the land three years ago for $140,000 Hank contributos machinery (Sec. 1231 property purchased four years ago) having a $130,000 adjusted basis and a $75,000 FMV in exchange for 105 shares of Hades stock Lulu contributes services worth $50,000 in exchange for 40 shares of Hades stock Read the...
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