An individual contributes property with a basis of $10000, and fair market value of $20000 to a corporation in return fo...
An individual contributes property with a basis of $10000, and fair market value of $20000 to a corporation in return for 50% of the corporation's stock. The individual is the only transferor in the transaction. The individual's stock basis after the transfer is:
Homework Answers
The individual stock basis after the transfer is $10000. Because for exchange transactions purposes and many other purposes, the basis i.e. actual cost of the property/asset is used.
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An individual contributes property with a basis of $10000, and fair market value of $20000 to a corporation in return fo...
An individual contributes property with a basis of $10000, and fair market value of $20000 to...
An individual contributes property with a basis of $10000, and fair market value of $20000 to a corporation in return for 50% of the corporation's stock. The individual is the only transferor in the transaction. The individual's stock basis after the transfer is:
An individual contributes two properties to a corporation in a 351 exchange. The first property has...
An individual contributes two properties to a corporation in a 351 exchange. The first property has a basis of $50000, and fair market value of $70000. The second property has a basis of $80000, and fair market value of $85000. The second property is subject to a mortgage of $40000. The individual's stock basis after the transfer is: A.130000 B. 120000 C. 155000 D. 90000
Rachelle transfers property with a tax basis of $825 and a fair market value of $1,300...
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
When a transferor contributes property to a corporation in exchange for stock in the corporation, and...
When a transferor contributes property to a corporation in exchange for stock in the corporation, and the transaction qualifies under section 351 the transferor takes what kind of basis in the stock? a. transferred basis b. exchanged basis c. substituted basis d. both a and b e. both b and c f. both a and c
4). Andrew contributes property with a fair market value of $6,000,000 and an adjusted basis of...
4). Andrew contributes property with a fair market value of $6,000,000 and an adjusted basis of $2,000,000 to AP Partnership. Andrew shares in $3,000,000 of partnership debt under the liability sharing rules, giving him an initial adjusted basis for his partnership interest of $5,000,000. One month after the contribution, Andrew receives a cash distribution from the partnership of $3,000,000. Andrew would not have contributed the property if the partnership had not contractually obligated itself to make the distribution. Assume Andrew's...
Ryce contributes nondepreciable property with an adjusted basis of $60,000 and a fair market value of...
Ryce contributes nondepreciable property with an adjusted basis of $60,000 and a fair market value of $95,000 to the Montgomery Partnership in exchange for a one-half interest in profits and capital. In the next tax year, when the property’s fair market value is $100,000, the partnership distributes the property to Jarvis, the other one-half partner. Jarvis’s basis in the partnership interest was $100,000 immediately before the distribution. Which partner must recognize a gain, what is the amount recognized, and what...
Amy transfers property with a tax basis of $1,155 and a fair market value of $1,020...
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
Jocelyn contributes land with a basis of $36,500 and fair market value of $54,750 and inventory...
Jocelyn contributes land with a basis of $36,500 and fair market value of $54,750 and inventory with a basis of $11,200 and fair market value of $16,800 in exchange for 100% of Zion Corporation stock. The land is subject to a $9,125 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. The exchange (Is or Is not) tax-free under § 351 because the release of a liability (is or is not) treated as boot...
Jocelyn contributes land with a basis of $32,000 and fair market value of $48,000 and inventory...
Jocelyn contributes land with a basis of $32,000 and fair market value of $48,000 and inventory with a basis of $14,200 and fair market value of $21,300 in exchange for 100% of Zion Corporation stock. The land is subject to a $8,000 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange_____ tax-free under § 351 because the release of a liability______ treated as boot under...
Casey transfers property with a tax basis of $3,060 and a fair market value of $6,900...
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
4). Andrew contributes property with a fair market value of $6,000,000 and an adjusted basis of $2,000,000 to AP Partnership. Andrew shares in $3,000,000 of partnership debt under the liability sharing rules, giving him an initial adjusted basis for his partnership interest of $5,000,000. One month after the contribution, Andrew receives a cash distribution from the partnership of $3,000,000. Andrew would not have contributed the property if the partnership had not contractually obligated itself to make the distribution. Assume Andrew's...
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