Question

Janice and Thom form the Conestoga Corporation with the following consideration: Consideration Transferred B...

Janice and Thom form the Conestoga Corporation with the following consideration:

Consideration Transferred
Basis to
Transferor
Fair Market
Value
Number of
Shares Issued
From Janice—
Cash $125,000 $125,000
Machinery 210,000 400,000 525
From Thom—
Cash $200,000 $200,000
Building 390,000 280,000
Land 110,000 90,000 570

In the event the corporation is subject to the built-in loss adjustment, the alternative approach is not elected by the corporation and shareholder. Regarding these transactions, provide the following information:

If an amount is zero, enter "0".

e. Thom's basis in the Conestoga Corporation stock is $.

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f. Conestoga Corporation's basis in the building is $. Its basis in the land is $.

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Answer #1

Answer The Conestoga Corporation Buidling Batto to Transferer - 390000 Cash Basic to Transfer - 200000 and Baric to TransforThe Conestoga corporation Brasis in the building c corporaloni Balles in the Land = 110000 Its basts in the building - 39000

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