Mr. ZJ owns a sole proprietorship. The business assets have a $246,000 aggregate adjusted basis. According to

Question:

Mr. ZJ owns a sole proprietorship. The business assets have a $246,000 aggregate adjusted basis. According to an independent appraisal, the business is worth $400,000. Mr. ZJ transfers his business to ZJL in exchange for 1,000 shares of ZJL stock. In each of the following cases, compute Mr. ZJ’s recognized gain on the exchange of assets for stock.
a. Immediately after the exchange, ZJL has 20,000 shares of outstanding stock of which Mr. ZJ owns 1,000 shares.
b. Immediately after the exchange, ZJL has 1,500 shares of outstanding stock of which Mr. ZJ owns 1,000 shares.
c. Immediately after the exchange, ZJL has 1,200 shares of outstanding stock of which Mr. ZJ owns 1,000 shares.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...