ZuoTi.Pro
Question

Evan is the sole shareholder of Corporation. Evan transferred real estate to Corporation in exchange for...

Evan is the sole shareholder of Corporation. Evan transferred real estate to Corporation in exchange for all of the stock of Corporation. The real estate was a capital asset in Evan’s hands and will also be a capital asset when held by the corporation. Evan’s basis in the real estate was $10,000 and the value of the real estate was $8,000 on the date of the transfer. If Evan received $2,000 in cash and 100 shares of stock from the corporation in exchange for the real estate, the resulting bases for Evan’s stock and the corporations real estate are:

Group of answer choices

Evan’s stock basis is $8,000; Corporation’s basis in the real estate is $8,000

Evan’s stock basis is $10,000; Corporation’s basis in the real estate is $10,000

Evan’s stock basis is $10,000; Corporation’s basis in the real estate is $8,000

Evan’s stock basis is $6,000; Corporation’s basis in the real estate is $12,000

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

Homework Answers

Answer #1

The in basis resulting bases for Evans stock and the corporatione real estate are Answer: Evans stock basis gis $ 8000; Cou

0 0
Add a comment
Know the answer?
Add Answer to:
Evan is the sole shareholder of Corporation. Evan transferred real estate to Corporation in exchange for...
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

  • 3. Corporation K distributed a parcel of real estate to a shareholder that had an adjusted...

    3. Corporation K distributed a parcel of real estate to a shareholder that had an adjusted basis to the corporation of $50,000 and a fair market value of $75,000. The property was subject to a mortgage of $80,000, which was assumed by the shareholder. What is Corporation K's recognized gain (or loss) on the distribution to the shareholder? A. $(5,000) B. $0 C. $25,000 D. $30,000 bent used in its business to its sole shareholder Mr. B for $13,000.

  • Mavis is the sole shareholder of Randiff, Inc., an S corporation with a December 31 year-end. The...

    Mavis is the sole shareholder of Randiff, Inc., an S corporation with a December 31 year-end. The basis of her stock at January 1, 20X1, is $20,000. She loaned the corporation $10,000 on January 1, 20X1. The corporation had a taxable loss of $24,000 in 20X1 and taxable income of $15,000 in 20X2. What is the stock basis at December 31, 20X2? A. $6,000 B. $11,000 C. $12,000 D. $24,000

  • George, a sole shareholder, has a $17,000 stock basis and $16,000 basis in a loan that...

    George, a sole shareholder, has a $17,000 stock basis and $16,000 basis in a loan that he made to George and Sons a calendar year S Corporation with no AEP. At the beginning of the tax year, the corporation’s AAA and OAA balances are $0. Subchapter S ordinary income for the year is $18,200 during which George and Sons, received $8,000 of tax-exempt interest income. Cash of $17,300 is distributed to George on November 15. Please compute George’s Stock basis,...

  • Diego transfers real estate with an adjusted basis of $446,000 and fair market value of $624,400...

    Diego transfers real estate with an adjusted basis of $446,000 and fair market value of $624,400 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $530,740. Determine Diego's recognized gain on the transfer and the basis for his stock. If amount is zero, enter "0". Diego has a recognized gain on the transfer of $_____ and a basis of $_____ for his stock.

  • Callie incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in...

    Callie incorporated her 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 tax bases: Tax FMV Basis Inventory $ 34,500 $ 17,000 Building 193,000 147,000 Land 321,750 329,000 Total $ 549,250 $ 493,000 The corporation also assumed a mortgage of $135,750 attached to the building and land. The fair market value of the corporation’s stock...

  • (CO 10) Jack Slater is the sole shareholder of an S corporation. During 2018, Jack received...

    (CO 10) Jack Slater is the sole shareholder of an S corporation. During 2018, Jack received a distribution of $20,000. His basis in the stock at December 31, 2017 was $7,000. The S corporation earned ordinary income of $12,000 in 2018. The corporation had no accumulated E & P. What should be the amount of return of capital for Jack? $19,000 $7,000 $12,000 $20,000

  • Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in...

    Zhang incorporated her 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: FMV Adjusted Basis Inventory $ 52,000 $ 26,000 Building 390,000 260,000 Land 598,000 780,000 Total $ 1,040,000 $ 1,066,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation’s stock...

  • Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in...

    Zhang incorporated her 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 value and adjusted basis. FMV Adjusted Basis Inventory $ 20,000 $ 11,000 Building 150,000 100,000 Land 230,000 300,000 Total $ 400,000 $ 411,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation’s stock...

  • Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in...

    Zhang incorporated her 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 value and adjusted basis.                                                               FMV                Adjusted Basis                         Inventory              $    20,000                  $ 11,000                         Building                   250,000                  100,000                         Land                        530,000                   300,000                         Total                      $ 800,000               $ 411,000           The corporation also assumed a mortgage of $500,000 attached to the building and land. The fair market value of the...

  • Problem 4-49 (0.6) Gigi transfers real estate (basis of $60,000 and fair market value of $40,000...

    Problem 4-49 (0.6) Gigi transfers real estate (basis of $60,000 and fair market value of $40,000 to Monarch Corporation in exchange for shares of 5 1244 stock. Assume that the transfer qualifies under 5 351. a. What is the basis of the stock to Gigi? (Gigi and Monarch do not make an election to reduce her stock basis.) The basis of the stock to Gigi is $ 60,000 In an exception to the capital treatment that generally results. 1244 permits...

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