Joe transfers land and equipment with adjusted basis of $350,000 and $50,000, respectively, to a ...
- Joe transfers land and equipment with adjusted basis of $350,000 and $50,000, respectively, to a newly formed corporation, ABC, in exchange for 100% of the stock. The corporation assumes the liability on the transferred land in the amount of 500,000.
What is Joe’s basis in the stock of ABC Corporation?
Homework Answers
Answer
Calculation of Gain
Particulars Amount
Liability on transfered real estate 5,00,000
Less:- adjusted real basis value 3,50,000
Gain is recognises 1,50,000
The gain on transfer is as 1,50,000
Thank you
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