Business, 07.08.2021 05:00 mmcdaniels46867

Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation’s stock. The property transferred to the corporation had the following fair market values and adjusted bases: FMV Adjusted Basis
Inventory $ 52,000 $ 26,000
Building 390,000 260,000
Land 598,000 780,000
Total $ 1,040,000 $ 1,066,000
The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation’s stock received in the exchange was $940,000. The transaction met the requirements to be tax-deferred under §351. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
c. What is Zhang’s tax basis in the stock she receives in the exchange?
Tax basis:
Assume the corporation assumed a mortgage of $1,140,000 attached to the building and land. Assume the fair market value of the building is now $650,000 and the fair market value of the land is $1,378,000. The fair market value of the stock remains $940,000.
e. How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts?
Gain or loss recognized:
Assume the corporation assumed a mortgage of $1,140,000 attached to the building and land. Assume the fair market value of the building is now $650,000 and the fair market value of the land is $1,378,000. The fair market value of the stock remains $940,000.
f. What is Zhang’s tax basis in the stock she receives in the exchange?
Assume the corporation assumed a mortgage of $1,140,000 attached to the building and land. Assume the fair market value of the building is now $650,000 and the fair market value of the land is $1,378,000. The fair market value of the stock remains $940,000.
g. What is the corporation’s adjusted basis in each of the assets received in the exchange? (Do not round intermediate calculations.)
Inventory Building Land
Adjusted basis

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 21:00

12. nelson corporation, which has only one product, has provided the following data concerning its most recent month of operations: selling price $ 115 units in beginning inventory 380 units produced 5,900 units sold 6,070 units in ending inventory 210 variable costs per unit: direct materials $ 46 direct labor $ 27 variable manufacturing overhead $ 3 variable selling and administrative $ 12 fixed costs: fixed manufacturing overhead $ 112,100 fixed selling and administrative $ 36,420 the company produces the same number of units every month, although the sales in units vary from month to month. the company's variable costs per unit and total fixed costs have been constant from month to month. a. prepare a contribution format income statement for the month using variable costing. unit product cost under variable costing direct materials direct labor variable manufacturing overhead variable costing unit product cost (formula)

Answers: 3

Answer

Business, 22.06.2019 01:50

Which value describes the desire to be one’s own boss? a. autonomy b. status c. security d. entrepreneurship

Answers: 2

Answer

Business, 22.06.2019 05:10

Suppose that the free states of eldricia, a small nation, has consumption, investment, government purchases, imports, and exports as follows. consumption $140 investment $50 government purchases $45 imports $30 exports $15 calculate the free states of eldricia's gdp

Answers: 2

Answer

Business, 22.06.2019 08:40

Which of the following is not a characteristic of enterprise applications that cause challenges in implementation? a. they introduce "switching costs," making the firm dependent on the vendor. b. they cause integration difficulties as every vendor uses different data and processes. c. they are complex and time consuming to implement. d. they support "best practices" for each business process and function. e. they require sweeping changes to business processes to work with the software.

Answers: 1

Answer

You know the right answer?

Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the co...

Questions