F and G formed a corporation on March 1 this year. F transfe…
F and G formed a corporation on March 1 this year. F transferred equipment worth $40,000 (basis $15,000) in exchange for 40 shares of stock, and performed services worth $10,000 in exchange for 10 shares of stock. In exchange for 50 shares of stock, G contributed land (investment) worth $70,000 (basis $9,000) subject to a mortgage of $20,000, which the corporation assumed. If G should sell his stock, the holding period for G will
Read DetailsTim, a cash basis taxpayer, incorporates his sole proprietor…
Tim, a cash basis taxpayer, incorporates his sole proprietorship. He transfers the following items to newly created Wren Corporation. Adjusted Fair Market Basis Value Cash $ 20,000 $ 20,000 Building 110,000 160,000 Mortgage payable (secured by the building and held for 15 years) 135,000 135,000 With respect to this transaction:
Read DetailsKirby and Helen form Red Corporation. Kirby transfers proper…
Kirby and Helen form Red Corporation. Kirby transfers property, basis of $20,000 and value of $300,000, for 100 shares in Red Corporation. Helen transfers property, basis of $40,000 and value of $280,000, and provides legal services in organizing the corporation. The value of her services is $20,000. In return Helen receives 100 shares in Red Corporation. Regarding these transfers:
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