Dan and Patricia form Crane Corporation. Dan transfers land (worth $200,000, basis of $60,000) for 50% of
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$150,000, adjusted basis of $30,000) and provides services worth ($50,000) for 50% of the stock.
a. Will the transfers qualify under § 351? Explain.
b. What are the tax consequences to Dan and Patricia?
c. What is Crane Corporation's basis in the land and the machinery?
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Related Book For
South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781285438290
18th Edition
Authors: James Smith, William Raabe, David Maloney, James Young
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