Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement,...
Sam and Devon agree to go into business together selling
college-licensed clothing. According to the agreement, Sam will
contribute inventory valued at $100,000 in return for 80 percent of
the stock in the corporation. Sam’s tax basis in the inventory is
$60,000. Devon will receive 20 percent of the stock in return for
providing accounting services to the corporation (these qualified
as organizational expenditures). The accounting services are valued
at $25,000.
1)Explain how to calculate the gain/loss realized, gain/loss
recognized and the basis in the stock received by the shareholder.
Also discuss the tax result when services are exchanged for
stock.
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Sam and Devon agree to go into business together selling
college-licensed clothing. According to the agreement,...
Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement,...
Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement, Sam will contribute inventory valued at $100,000 in entory valued at $100,000 in return for 80 perce the inventory is 560,000. Devon will receive 20 percent of the stock in return for providing accounting services to the corporation (these qualified as organizational expenditures). The accounting services are valued at $25,000. Enter 50 ifo or not applicable. Sam Devon Realized Gain Boot Received Recognized Gain...
Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement,...
Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement, Sam will contribute inventory valued at $124,000 in return for 80 percent of the stock in the corporation. Sam’s tax basis in the inventory is $74,400. Devon will receive 20 percent of the stock in return for providing accounting services to the corporation (these qualified as organizational expenditures). The accounting services are valued at $31,000. (Negative amounts should be indicated by a minus sign....
Jack and Dan agree to go into business together selling clothing. According to the agreement, Jack...
Jack and Dan agree to go into business together selling clothing. According to the agreement, Jack will contribute inventory valued at $91,200 in return for 80 percent of the stock in the corporation. Jack’s tax basis in the inventory is $50,160. Dan will receive 20 percent of the stock in return for providing accounting services to the corporation (these qualified as organizational expenditures). The accounting services are valued at $22,800. (Negative amounts should be indicated by a minus sign. Leave...
Jack and Dan agree to go into business together selling clothing. According to the agreement, Jack...
Jack and Dan agree to go into business together selling clothing. According to the agreement, Jack will contribute inventory valued at $91,200 in return for 80 percent of the stock in the corporation. Jack’s tax basis in the inventory is $50,160. Dan will receive 20 percent of the stock in return for providing accounting services to the corporation (these qualified as organizational expenditures). The accounting services are valued at $22,800. (Negative amounts should be indicated by a minus sign. Leave...
Jack and Dan agree to go into business together selling clothing. According to the agreement, Jack...
Jack and Dan agree to go into business together selling clothing. According to the agreement, Jack will contribute inventory valued at $91,200 in return for 80 percent of the stock in the corporation. Jack’s tax basis in the inventory is $50,160. Dan will receive 20 percent of the stock in return for providing accounting services to the corporation (these qualified as organizational expenditures). The accounting services are valued at $22,800. (Negative amounts should be indicated by a minus sign. Leave...
Jack and Dan agree to go into business together selling clothing. According to the agreement, Jack...
Jack and Dan agree to go into business together selling clothing. According to the agreement, Jack will contribute inventory valued at $91,200 in return for 80 percent of the stock in the corporation. Jack’s tax basis in the inventory is $50,160. Dan will receive 20 percent of the stock in return for providing accounting services to the corporation (these qualified as organizational expenditures). The accounting services are valued at $22,800. (Negative amounts should be indicated by a minus sign. Leave...
sorry for the marks I didn't want to get in trouble for copyright. the purple all...
sorry for the marks I didn't want to get in trouble for
copyright. the purple all belong to the same person and so do the
red. * the columns should be purple and red - i just need all that
info answered for both* the yellow is just the corporation name.
thanks
Required Information The following information applies to the questions displayed below.) b e formed a corporatio Den Inc.) on October 31 to develop a drug to address split...
Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI)....
Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: Adjusted Appreciation Cash Receivables Building Land Total $ 28,750 17,600 145,500 252,000 $443,850 $ 28,750 17,600 72,750 84,000 $203,100 72,750 168,000 $240,750 Payables Mortgage* Total $ 21,600 126,750 $ 148,350 $ 21,600 126,750 $148, 350...
Ben and Jerry decide to incorporate their ice cream business. Allie would also like to be a shareholder in the bu...
Ben and Jerry decide to incorporate their ice cream business. Allie would also like to be a shareholder in the business. As such, Ben and Allie agree that immediately after the incorporation of the company and the issuance of stock, Ben will sell Allie half of his shares in the company. Ben contributes inventory (FMV $60,000, Basis $30,000), and accounts receivable (FMV $40,000, Basis $40,000) to the corporation for 50% of the stock, and Jerry contributes equipment (FMV $60,000, Basis...
Required information The following information applies to the questions displayed below.) Ivan incorporated his sole proprietorship...
Required information The following information applies to the questions displayed below.) Ivan incorporated his 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: Inventory Building Land Total FMV $ 19,600 83,500 78,250 $181,350 Adjusted Basis $ 37,250 54,750 40,250 $132,250 The fair market value of the corporation's stock received in the exchange equaled...
Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement, Sam will contribute inventory valued at $100,000 in entory valued at $100,000 in return for 80 perce the inventory is 560,000. Devon will receive 20 percent of the stock in return for providing accounting services to the corporation (these qualified as organizational expenditures). The accounting services are valued at $25,000. Enter 50 ifo or not applicable. Sam Devon Realized Gain Boot Received Recognized Gain...
sorry for the marks I didn't want to get in trouble for
copyright. the purple all belong to the same person and so do the
red. * the columns should be purple and red - i just need all that
info answered for both* the yellow is just the corporation name.
thanks
Required Information The following information applies to the questions displayed below.) b e formed a corporatio Den Inc.) on October 31 to develop a drug to address split...
Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: Adjusted Appreciation Cash Receivables Building Land Total $ 28,750 17,600 145,500 252,000 $443,850 $ 28,750 17,600 72,750 84,000 $203,100 72,750 168,000 $240,750 Payables Mortgage* Total $ 21,600 126,750 $ 148,350 $ 21,600 126,750 $148, 350...
Ben and Jerry decide to incorporate their ice cream business. Allie would also like to be a shareholder in the business. As such, Ben and Allie agree that immediately after the incorporation of the company and the issuance of stock, Ben will sell Allie half of his shares in the company. Ben contributes inventory (FMV $60,000, Basis $30,000), and accounts receivable (FMV $40,000, Basis $40,000) to the corporation for 50% of the stock, and Jerry contributes equipment (FMV $60,000, Basis...
Required information The following information applies to the questions displayed below.) Ivan incorporated his 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: Inventory Building Land Total FMV $ 19,600 83,500 78,250 $181,350 Adjusted Basis $ 37,250 54,750 40,250 $132,250 The fair market value of the corporation's stock received in the exchange equaled...
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