Ruth transfers property worth $200,000 (basis of $60,000) to Goldfinch Corporation. In return, she receives 80%...
Ruth transfers property worth $200,000 (basis of $60,000) to Goldfinch Corporation. In return, she receives 80% of its stock (worth $180,000) and a long-term note, executed by Goldfinch and made payable to Ruth (worth $20,000). Ruth will recognize no gain on the transfer. True or False? Please explain your reasons.
Homework Answers
False as the long-term obligation of Goldfinch Corporation constitutes boot. Thus, Ruth has boot in the amount of $20,000 and will recognize gain to that extent.
Add Answer to:
Ruth transfers property worth $200,000 (basis of $60,000) to
Goldfinch Corporation. In return, she receives 80%...
Eileen transfers property worth $200,000 (basis of $190,000) to Goldfinch Corporation. In return, she receives 80%...
Eileen transfers property worth $200,000 (basis of $190,000) to Goldfinch Corporation. In return, she receives 80% of the stock in Goldfinch Corporation (fair market value of $180,000) and a long-term note (fair market value of $20,000) executed by Goldfinch and made payable to Eileen. Eileen recognizes gain on the transfer of: a. $0. b. $10,000. c. $20,000. d. $190,000. e. None of the above.
Elleen transfer property worth $200,000 (basis of $190.000) to Goldfinch Corporation. In return, she receives 30%...
Elleen transfer property worth $200,000 (basis of $190.000) to Goldfinch Corporation. In return, she receives 30% of the stock in Goldfinch corporation (ar market value of $100.000) and a long term not fair market value of $20,000) ected by Goldfinch and made payable to Eileen. Eileen recognizes gain on the transfer of: a $190,000 b. 50 c. $20,000 d. $10,000 Oo. None of these cholces are correct.
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.
Krystin transfers property worth $200,000 (basis of $190,000) to Pierce Corporation for 90% of the stock...
Krystin transfers property worth $200,000 (basis of $190,000) to Pierce Corporation for 90% of the stock in Pierce Corporation (fair market value of $180,000) and receives $20,000 cash. Krystin recognizes gain on the transfer of: o $10,000 o$0 o $20,000 O $180,000
Jane transfers property (basis of $180,000 and fair market value of $500,000) to Green Corporation for...
Jane transfers property (basis of $180,000 and fair market value of $500,000) to Green Corporation for 80% of its stock (worth $425,000) and a long-term note (worth $75,000) executed by Green Corporation and made payable to Jane. As a result of the transfer a. Jane recognizes no gain. b. Jane recognizes a gain of $270,000 c. Jane recognizes a gain of $320,000. d. Jane recognizes a gain of $75,000 De. None of these choices are correct.
Erica transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for...
Erica transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for all of Robin's stock, worth $300,000, and a 10-year note. The note was executed by Robin and made payable to Erica in the amount of $200,000. As a result of the transfer: a. Erica recognizes gain of $400,000. b. Robin Corporation has a basis of $100,000 in the land. c. Robin Corporation has a basis of $300,000 in the land. d. Erica does not...
Kevin transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for...
Kevin transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for all of Robin’s stock, worth $300,000, and a 10-year note. The note was executed by Robin Corp. and made payable to Kevin in the amount of $200,000. Because of the transfer: a. Kevin does not recognize gain. b. Kevin recognizes gain of $400,000. c. Robin Corporation has a basis of $100,000 in the land. d. Robin Corporation has a basis of $300,000 in the...
Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,500,000...
Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,500,000 for 50 shares in Crow Corporation Mary transfers property, basis of $80,000 and value of 51,480,000, and agrees to serve as manager of Crow for one year; in return Mary receives 50 shares of Crow. The value of Mary's services is $120,000. With respect to the transfers: a. Crow will have a business deduction of $120,000 for the value of the services Mary will...
Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150,000) for 70...
Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $15,000 (basis of $3,000) and for legal services (worth $165,000) in organizing the corporation. What gain or income, if any, will the parties recognize on the transfer? Ann recognizes a gain of $______ and Bob recognizes a gain of $_____ and compensation income of $______. What basis do Ann and Bob have in...
1- nn and Bob form Robin Corporation. Ann transfers property worth $352,500 (basis of $123,375) for...
1- nn and Bob form Robin Corporation. Ann transfers property worth $352,500 (basis of $123,375) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $141,000 (basis of $28,200) and for legal services (worth $14,100) in organizing the corporation. a. What gain or income, if any, will the parties recognize on the transfer? Ann recognizes of $. Bob recognizes of $. b. What basis do Ann and Bob have in the Robin Corporation stock? Ann has a basis of...
Elleen transfer property worth $200,000 (basis of $190.000) to Goldfinch Corporation. In return, she receives 30% of the stock in Goldfinch corporation (ar market value of $100.000) and a long term not fair market value of $20,000) ected by Goldfinch and made payable to Eileen. Eileen recognizes gain on the transfer of: a $190,000 b. 50 c. $20,000 d. $10,000 Oo. None of these cholces are correct.
Krystin transfers property worth $200,000 (basis of $190,000) to Pierce Corporation for 90% of the stock in Pierce Corporation (fair market value of $180,000) and receives $20,000 cash. Krystin recognizes gain on the transfer of: o $10,000 o$0 o $20,000 O $180,000
Jane transfers property (basis of $180,000 and fair market value of $500,000) to Green Corporation for 80% of its stock (worth $425,000) and a long-term note (worth $75,000) executed by Green Corporation and made payable to Jane. As a result of the transfer a. Jane recognizes no gain. b. Jane recognizes a gain of $270,000 c. Jane recognizes a gain of $320,000. d. Jane recognizes a gain of $75,000 De. None of these choices are correct.
Erica transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for all of Robin's stock, worth $300,000, and a 10-year note. The note was executed by Robin and made payable to Erica in the amount of $200,000. As a result of the transfer: a. Erica recognizes gain of $400,000. b. Robin Corporation has a basis of $100,000 in the land. c. Robin Corporation has a basis of $300,000 in the land. d. Erica does not...
Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,500,000 for 50 shares in Crow Corporation Mary transfers property, basis of $80,000 and value of 51,480,000, and agrees to serve as manager of Crow for one year; in return Mary receives 50 shares of Crow. The value of Mary's services is $120,000. With respect to the transfers: a. Crow will have a business deduction of $120,000 for the value of the services Mary will...
Most questions answered within 3 hours.
-
The phylum Protista has often been referred to as a junk drawer
of classification. Explain what...
asked 2 minutes ago -
The average amount of money spent for lunch per person in the
college cafeteria is $7.09...
asked 4 minutes ago -
You follow the lab procedure and at the end of Part 4C, you used
an average...
asked 22 minutes ago -
Write 250-450 words, about the following: • Analyze how a
servant leader in your organization or...
asked 26 minutes ago -
3. American and Japanese workers can each produce 4 cars a
year. An American worker can...
asked 29 minutes ago -
On October 1, 20X1, a company purchased a piece of land by
agreeing to pay the...
asked 41 minutes ago -
Jamie is doing a survey at her school about whether the students
feel the cafeteria food...
asked 46 minutes ago -
What are the roles of 3' and 5' untranslated regions in
mRNAs?
asked 47 minutes ago -
A domestic television receives antenna delivers a sky noise
power of -105 dBm to a matched...
asked 46 minutes ago -
What do you think are the chemical reactions involved in the
breathalyzer tests administered to potentially...
asked 1 hour ago -
A random sample of 120 observations produces a mean of
38.2 from a population with a...
asked 1 hour ago -
The average area of land burned by forest fires every year in
Canada is 2.5 million...
asked 1 hour ago