Question

Dan Knight and Patricia Chen, who are good friends, form Crane Corporation. Dan transfers land (worth $200,000, basis of $60,000) for 50% of the stock in Crane. Patricia transfers machinery (worth $150,000, adjusted basis of $30,000) and provides services worth $50,000 for 50% of the stock.

Answer 1

This in individual tax return of Patricia , transaction of patricia are reflected in this return.
(99) 1040 Department of the Treasury -- Internal Revenue Service U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only --Do not write or staple in this space. Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widowler) (QW) Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box. a child but not your dependent Your first name and middle initial Last name Your social security number Patricia If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address (number and street). If you have a P.O.box, see instructions. Apt no. Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Checking a box below will not change your tax or refund. You Spouse Foreign country name Foreign province/state/county Foreign postal code of more than four dependents, see instructions and here Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualities for (see instructions: (1) First name Last name Child tax credit Credit for other dependents

1 50000 2b 3b 4b 4d 5b 6 120000 7a 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 2a b Taxable interest. Attach Sch. B if required 3a Qualified dividends За Standard b Ordinary dividends. Attach Sch. B if required Deduction for 4a IRA distributions. 4a b Taxable amount • Single or Married с Pensions and annuities 4c d Taxable amount filing separately $12.200 5a Social security benefits. 5a b Taxable amount • Married filing 6 jointly or Qualifying Capital gain or loss). Attach Schedule D if required. If not required, check here widower). 7a Other income from Schedule 1, line 9 $24.400 • Head of b Add lines 1, 2b, 35, 46, 4d, Sb, 6, and 7a. This is your total income household 8а $18,350 Adjustments to income from Schedule 1, line 22 If you checked b Subtract line 8a from line 7b. This is your adjusted gross income any box under 9 Standard deduction or itemized deductions (from Schedule A) Standard 9 12200 Deduction 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A 10 see instructions 11a Add lines 9 and 10 b Taxable income. Subtract line 11a from line 8b. If zero or less, enter-O- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B 7b 8а 8b 11a 11b 1157800 Form 1040 (2019)