Craig, Will, Lee, Maria, and Tracy form Tiger Corporation with the following investment: Consideration Transferred Basis...
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Craig, Will, Lee, Maria, and Tracy form Tiger Corporation with the following investment: Consideration Transferred Basis to Fair Market Transferor Value Number of Shares Issued From Craig- Raw land held 6 months $ 10,000 $30,000 30 From Will Apple Common (held 2 Months) 9,000 10,000 7 Business liability 3,000 3,000 From Lee- Accounts receivable (held 2 years) -0- 300,000 270* From Maria- Equipment (held 16 months) 240,000 400,000 Personal liability 100,000 100,000 Business liability 150,000 150,000 150 From Tracy- Building (held 12 months) 200,000 340,000 Mortgage on building 210,000 210,000 130 *Lee receives $30,000 in cash in addition to the 270 shares. Assume each share is worth $1,000. All liabilities transferred by shareholders are assumed by Tiger Corporation. The value of each share of Tiger Corporation stock is $1,000. a. What, if any, is Craig's recognized gain or loss? b. What is Craig's basis in the Tiger Corporation stock? Page 8 c. How much gain or loss, if any, must Will recognize? d. What is Will's basis in the Tiger Corporation stock? e. What is Will's holding period in the stock? f. How much gain or loss, if any, must Lee recognize? g. What is Lee's basis in the Tiger Corporation stock? h. What is Tiger Corporation's basis in the accounts receivable? i. What is Lee's holding period in his stock? j. What, if any, is Maria's recognized gain or loss? k. What is Maria's basis in the Tiger Corporation stock? 1. How much gain or loss, if any, must Tracy recognize? m. What is Craig's holding period in his stock? n. What is Tiger Corporation's basis in the building? Craig, Will, Lee, Maria, and Tracy form Tiger Corporation with the following investment: Consideration Transferred Basis to Fair Market Transferor Value Number of Shares Issued From Craig- Raw land held 6 months $ 10,000 $30,000 30 From Will Apple Common (held 2 Months) 9,000 10,000 7 Business liability 3,000 3,000 From Lee- Accounts receivable (held 2 years) -0- 300,000 270* From Maria- Equipment (held 16 months) 240,000 400,000 Personal liability 100,000 100,000 Business liability 150,000 150,000 150 From Tracy- Building (held 12 months) 200,000 340,000 Mortgage on building 210,000 210,000 130 *Lee receives $30,000 in cash in addition to the 270 shares. Assume each share is worth $1,000. All liabilities transferred by shareholders are assumed by Tiger Corporation. The value of each share of Tiger Corporation stock is $1,000. a. What, if any, is Craig's recognized gain or loss? b. What is Craig's basis in the Tiger Corporation stock? Page 8 c. How much gain or loss, if any, must Will recognize? d. What is Will's basis in the Tiger Corporation stock? e. What is Will's holding period in the stock? f. How much gain or loss, if any, must Lee recognize? g. What is Lee's basis in the Tiger Corporation stock? h. What is Tiger Corporation's basis in the accounts receivable? i. What is Lee's holding period in his stock? j. What, if any, is Maria's recognized gain or loss? k. What is Maria's basis in the Tiger Corporation stock? 1. How much gain or loss, if any, must Tracy recognize? m. What is Craig's holding period in his stock? n. What is Tiger Corporation's basis in the building? Craig, Will, Lee, Maria, and Tracy form Tiger Corporation with the following investment: Consideration Transferred Basis to Fair Market Transferor Value Number of Shares Issued From Craig- Raw land held 6 months $ 10,000 $30,000 30 From Will Apple Common (held 2 Months) 9,000 10,000 7 Business liability 3,000 3,000 From Lee- Accounts receivable (held 2 years) -0- 300,000 270* From Maria- Equipment (held 16 months) 240,000 400,000 Personal liability 100,000 100,000 Business liability 150,000 150,000 150 From Tracy- Building (held 12 months) 200,000 340,000 Mortgage on building 210,000 210,000 130 *Lee receives $30,000 in cash in addition to the 270 shares. Assume each share is worth $1,000. All liabilities transferred by shareholders are assumed by Tiger Corporation. The value of each share of Tiger Corporation stock is $1,000. a. What, if any, is Craig's recognized gain or loss? b. What is Craig's basis in the Tiger Corporation stock? Page 8 c. How much gain or loss, if any, must Will recognize? d. What is Will's basis in the Tiger Corporation stock? e. What is Will's holding period in the stock? f. How much gain or loss, if any, must Lee recognize? g. What is Lee's basis in the Tiger Corporation stock? h. What is Tiger Corporation's basis in the accounts receivable? i. What is Lee's holding period in his stock? j. What, if any, is Maria's recognized gain or loss? k. What is Maria's basis in the Tiger Corporation stock? 1. How much gain or loss, if any, must Tracy recognize? m. What is Craig's holding period in his stock? n. What is Tiger Corporation's basis in the building? Craig, Will, Lee, Maria, and Tracy form Tiger Corporation with the following investment: Consideration Transferred Basis to Fair Market Transferor Value Number of Shares Issued From Craig- Raw land held 6 months $ 10,000 $30,000 30 From Will Apple Common (held 2 Months) 9,000 10,000 7 Business liability 3,000 3,000 From Lee- Accounts receivable (held 2 years) -0- 300,000 270* From Maria- Equipment (held 16 months) 240,000 400,000 Personal liability 100,000 100,000 Business liability 150,000 150,000 150 From Tracy- Building (held 12 months) 200,000 340,000 Mortgage on building 210,000 210,000 130 *Lee receives $30,000 in cash in addition to the 270 shares. Assume each share is worth $1,000. All liabilities transferred by shareholders are assumed by Tiger Corporation. The value of each share of Tiger Corporation stock is $1,000. a. What, if any, is Craig's recognized gain or loss? b. What is Craig's basis in the Tiger Corporation stock? Page 8 c. How much gain or loss, if any, must Will recognize? d. What is Will's basis in the Tiger Corporation stock? e. What is Will's holding period in the stock? f. How much gain or loss, if any, must Lee recognize? g. What is Lee's basis in the Tiger Corporation stock? h. What is Tiger Corporation's basis in the accounts receivable? i. What is Lee's holding period in his stock? j. What, if any, is Maria's recognized gain or loss? k. What is Maria's basis in the Tiger Corporation stock? 1. How much gain or loss, if any, must Tracy recognize? m. What is Craig's holding period in his stock? n. What is Tiger Corporation's basis in the building?
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South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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