The corporation’s tax basis in an asset transferred into the business is the fair market value of the asset
True or False
The corporation’s tax basis in an asset transferred into the business is the fair market value...
Amy transfers property with a tax basis of $1,155 and a fair market value of $1,020 to a corporation in exchange for stock with a fair market value of $895 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $125 on the property transferred. What is Amy's tax basis in the stock received in the exchange? Multiple Choice $1,155 $1,030 $930 $895
Rachelle transfers property with a tax basis of $825 and a fair market value of $1,300 to a corporation in exchange for stock with a fair market value of $700 and $214 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $386 on the property transferred. What is the corporation's tax basis in the property received in the exchange? Multiple Choice $1,300 $1,039 $825 $700
Casey transfers property with a tax basis of $3,060 and a fair market value of $6,900 to a corporation in exchange for stock with a fair market value of $5,400 and $535 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $965 on the property transferred. Casey also incurred selling expenses of $383. What is the amount realized by Casey in the exchange? Multiple Choice $6,900 $6,517 $6,417 $5,882
Casey transfers property with a tax basis of $2,500 and a fair market value of $5,400 to a corporation in exchange for stock with a fair market value of $4,300 and $475 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $625 on the property transferred. Casey also incurred selling expenses of $302. What is the amount realized by Casey in the exchange? Multiple Choice $4,523 $5,098 $5,400 $4,998
Casey transfers property with a tax basis of $3,000 and a fair market value of $7.100 to a corporation in exchange for stock with a fair market value of $6,000 and $430 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $670 on the property transferred. Casey also incurred selling expenses of $562. What is the amount realized by Casey in the exchange? Multiple Choice О $7100 O O $6,538 O...
The basis of property converted from personal-use to business-use is the a. Fair market value to calculate depreciation and the adjusted basis to calculate gain or loss b. Greater of the adjusted basis or fair market value on the date of conversion c. Lesser of the adjusted basis or fair market value on the date of conversion d. Purchase price
How is the gain or loss of a capital asset calculated? adding the fair market value to the basis of the capital asset when sold subtracting the fair market value from the basis of the capital asset when sold adding the basis of the capital asset when sold to the fair market value subtracting the basis of the capital asset when sold from the fair market value
Lucia transferred equipment (adjusted basis of $100,000 and fair market value of $500,000) to Gamma Corporation. In return, Lucia received 80% of Gamma Corporation's stock (worth $320,000) and an automobile (fair market value of $60,000). In addition, there is an outstanding mortgage of $120,000, held for 5 years, on the building that Gamma Corporation assumed. With respect to this transaction: Lucia's recognized gain is $80,000. Gamma Corporation's basis in the building is $100,000. Lucia's recognized gain is $60,000. Lucia has...
Lucia transferred equipment (adjusted basis of $100,000 and fair market value of $500,000) to Gamma Corporation. In return, Lucia received 80% of Gamma Corporation's stock (worth $320,000) and an automobile (fair market value of $60,000). In addition, there is an outstanding mortgage of $120,000, held for 5 years, on the building that Gamma Corporation assumed. With respect to this transaction: A) Lucia's recognized gain is $80,000. B) Gamma Corporation's basis in the building is $100,000. C) Lucia's recognized gain is...
QUESTION 1 Lucia transferred equipment (adjusted basis of $100,000 and fair market value of $500,000) to Gamma Corporation. In return, Lucia received 80% of Gamma Corporation's stock (worth $320,000) and an automobile (fair market value of $60,000). In addition, there is an outstanding mortgl of S120,000, held for 5 years, on the building that Gamma Corporation assumed. With respect to this transaction: Lucia's recognized gain is $80,000. Gamma Corporation's basis in the building is $100,000 Lucia's recognized gain is $60,000...