Hunter and Warren form Tan Corporation. Hunter transfers equipment (basis of $210,000 and fair market value of
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Hunter and Warren form Tan Corporation. Hunter transfers equipment (basis of $210,000 and fair market value of $180,000) while Warren transfers land (basis of $15,000 and fair market value of $150,000) and $30,000 of cash. Each receives 50% of Tan’s stock.
Required: 1. Determine the amount of gain or loss Hunter recognizes on the formation of Tan Corporation. 2. Determine Hunter’s basis in his shares of Tan stock. Show your work. 3. Determine Tan’s basis in the equipment. Show your work.
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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