Noreen transfers to Spindle Corporation depreciable machinery originally costing $17,000 and now having a $12,000 adjusted basis.
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Question:
Noreen transfers to Spindle Corporation depreciable machinery originally costing $17,000 and now having a $12,000 adjusted basis. In exchange, Noreen receives all 350 shares of Spindle stock having a $19,000 FMV and a three-year Spindle note having a $6,000 FMV.
Requirements
a. | What are the amount and character of Noreen’s recognized gain or loss? |
b. | What are Noreen’s bases in the Spindle stock and note? |
c. | What is Spindle’s basis in the machinery? |
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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