ZuoTi.Pro
Question

Thanks for your help!! : ) 35. Andi Corporation transfers assets with an adjusted basis of $200,000 and an FMV of $300,0...

Thanks for your help!! : )

35. Andi Corporation transfers assets with an adjusted basis of $200,000 and an FMV of $300,000 to Bella Corporation in exchange for $300,000 of Bella Corporation stock as part of a tax-free reorganization. The Bella stock had been purchased from its shareholders one year earlier for $250,000. How much gain do Andi and Bella Corporations recognize on the asset transfer?    

A)

Andi

Bella

$0

$0

B)

Andi

Bella

$0

$50,000

C)

Andi

Bella

$100,000

$0

D)

Andi

Bella

$100,000

$50,000
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

As the stock is transferred as a part of tax free reorganization, no gain is recognized.

The answer is A.

0 0
Add a comment
Know the answer?
Add Answer to:
Thanks for your help!! : ) 35. Andi Corporation transfers assets with an adjusted basis of $200,000 and an FMV of $300,0...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 5 Andi Corporation transfers assets with an adjusted basis of $200,000 and an FMV of 300,000...

    5 Andi Corporation transfers assets with an adjusted basis of $200,000 and an FMV of 300,000 to Bella Corporation in exchange for $300,000 of Bella Corporation stock as part of a tax-free reorganization. The Bella stock had been purchased from its shareholders one year earlier for $250,000. How much gain do Andi and Bella Corporations recognize on the asset transfer? A) Andi S0 B) Andi $0 C) Andi $100,000 D) Andi s100,000 Page Ref: C: 7-14 and 7-15. (Slide 7-12)....

  • 1. A liquidation must be reported to the Internal Revenue Service on Form 966 A within...

    1. A liquidation must be reported to the Internal Revenue Service on Form 966 A within 60 days of the adoption of a plan of liquidation. B) that is filed with the national IRS office. C) whether the shareholders' realized gain is recognized or not. D) by the shareholders. 2. Andi Corporation transfers assets with an adjusted basis of $200,000 and an FMV of $300,000 to Bella Corporation in exchange for $300,000 of Bella Corporation stock as part of a...

  • Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,600,000...

    Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,600,000 for 30 shares in Crow Corporation. Mary transfers property, basis of $80,000 and value of $1,480,000, 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. Mary will not recognize gain or income, X b. Earl will recognize a gain of $1,400,000...

  • 3. Kevin and Lori formed Wonderful Inc., a C-Corporation. Kevin transfers land (FMv $250,000 and adjusted...

    3. Kevin and Lori formed Wonderful Inc., a C-Corporation. Kevin transfers land (FMv $250,000 and adjusted basis of 90,000) for 50% of the stock in the corporation and $20,000 cash. Lori transfers equipment (FMV 30,000 adjusted basis of $5,000) and will provide management services worth $200,000 after wonderful Inc. opens for 50% of the stock in the corporation. (7 points) a. Will the transfer qualify under $351 as a tax free transfer? Explain. b. What are the tax consequences to...

  • 3. Finn and Bianca form Spirit Inc., a C-Corporation. Finn transfers land (FMV $150,000 and adjusted...

    3. Finn and Bianca form Spirit Inc., a C-Corporation. Finn transfers land (FMV $150,000 and adjusted basis of 60,000) and agrees to provide services to manage the business after it opens worth $100,000 for 50% of the stock in the corporation. Bianca transfers equipment (FMV 260,000 adjusted basis of $85,000 for 50% of the stock in the corporation and $10,000 cash. The value of the stock received is $250,000 for each Finn and Bianca. (7 points) a. Will the transfer...

  • Brian transfers to Woodside Corporation property having a $33,000 adjusted basis and a $48,000 FMV in...

    Brian transfers to Woodside Corporation property having a $33,000 adjusted basis and a $48,000 FMV in exchange for all of Woodside's stock worth $12,000 and Woodside's assumption of a $36,000 mortgage on the property. Read the requirements. Requirement a. What is the amount of Brian's recognized gain or loss? Brian realizes a(n) and recognizes a. b. ooo What is the amount of Brian's recognized gain or loss? What is Brian's basis in the Woodside stock? What is Woodside's basis in...

  • 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...

  • Camille transfers property with a FMV of 1,200,000 and tax basis of 900,000 to a corporation in e...

    Camille transfers property with a FMV of 1,200,000 and tax basis of 900,000 to a corporation in exchange for 100% of newco’s stcok with a fair market value of 850,000 and 350,000 cash camille will recognize a gain of :______ 28.) Same facts as above camille basis in her new stock is :______ 29.) same facts as above new cos basis in the building is______ Please answer all parts and show work

  • PROBLEM 1: Jerry transfers two assets to a corporation as part of a Sec. 351 exchange....

    PROBLEM 1: Jerry transfers two assets to a corporation as part of a Sec. 351 exchange. The first asset has an adjusted basis of $70,000 and an FMV of $50,000. The second asset has an adjusted basis of $70,000 and an FMV of $150,000. The FMV of the stock received is $180,000, and he also receives $20,000 cash. The realized and recognized gain on the second asset is A) $80,000 realized; $20,000 recognized. B) $80,000 realized; $15,000 recognized. C) $20,000...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT