Yager and Boggs formed Y&B Company in the current year. Yager contributed a building with a fair
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Yager and Boggs formed Y&B Company in the current year. Yager contributed a building with a fair market value of
$97,000, a mortgage of $75,000 and an adjusted basis of $50,000 in return for 22 shares of YX&B Company stock. (Y&B assumed the mortgage.) Boggs contributed land with a fair market value of $22,000 and an adjusted basis of $40,000 in return for 12 shares of YX&B Company stock and 10 $1,000 bonds. Lyle performed legal and accounting work during the incorporation process in return for six shares of stock.
Determine the tax consequences of the transfers to all parties.
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Related Book For
CCH Federal Taxation Basic Principles 2020
ISBN: 9780808051787
2020 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback
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