Isela and Luis form XYZ Corporation. Isela transfers equipment worth $675,000 (basis of $200,000) and cash of
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Isela and Luis form XYZ Corporation. Isela transfers equipment worth $675,000 (basis of $200,000) and cash of $25,000 to XYZ Corporation for 50% of its stock. Luis transfers a building and land worth $650,000 (basis of $100,000) for 50% of XYZ's stock and $50,000 in cash. The building has $120,000 mortgage, which XYZ Corporation assumes . Enter your answer without dollar signs or commas. Use parentheses to indicate negative values . Round to the nearest dollar if necessary .
What is Luis recognized gain or loss?
what is Luis basis in the stock received?
Related Book For
Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
ISBN: 9780135919460
34th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
Posted Date: