Assume in Problem 13 that the property Bob transfers to Robin Corporation is worth $15,000 (basis of $3,000) and that his services in organizing the corporation are worth $165,000. What are the tax consequences to Ann, Bob, and Robin Corporation?
Answer to relevant QuestionsRhonda owns 50% of the stock of Peach Corporation. She and the other 50% shareholder, Rachel, have decided that additional contributions of capital are needed if Peach is to remain successful in its competitive industry. The ...Can a sole proprietor form as a single-member limited liability company (LLC)? If so, how would such an LLC be taxed? Red Corporation wants to set up a manufacturing facility in a mid western state. After considerable negotiations with a small town in Ohio, Red accepts the following offer: land (fair market value of $3 million) and cash of ...Emerald Corporation, a calendar year and accrual method taxpayer, provides the following information and asks you to prepare Schedule M–1 for 2014: Net income per books (after-tax)........ $257,950 Federal income tax per ...Seth, Pete, Cara, and Jen form Kingfisher Corporation with the following consideration: *Seth receives $6,000 in cash in addition to the 30 shares. **Pete receives $9,000 in cash in addition to the 30 shares. Assume that the ...
Post your question