Question: Dan and Patricia form Crane Corporation Dan transfers land worth

Dan and Patricia form Crane Corporation. Dan transfers land (worth $200,000, basis of $60,000) for 50% of the stock in Crane. Patricia transfers machinery (worth
$150,000, adjusted basis of $30,000) and provides services worth ($50,000) for 50% of the stock.
a. Will the transfers qualify under ยง 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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  • CreatedMay 25, 2015
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