Roscoe contributes a personal use asset with an adjusted basis of $15,000 and a fair market value

Question:

Roscoe contributes a personal use asset with an adjusted basis of $15,000 and a fair market value of $28,000 on the contribution date. Determine if any gain or loss is recognized and the basis under the following circumstances.

a. Roscoe contributes the asset to a sole proprietorship.

b. Roscoe contributes the asset to a partnership for 10% interest.

c. Roscoe contributes the asset to a corporation for 25% interest. (Assume § 351 control requirement is satisfied.)

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... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...