Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return
Question:
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for percent of the corporations stock. The property transferred to the corporation had the following fair market values and adjusted bases:
FMV Adjusted Basis
Inventory $ $
Building
Land
Total $ $
The corporation also assumed a mortgage of $ attached to the building and land. The fair market value of the corporations stock received in the exchange was $ The transaction met the requirements to be taxdeferred under
a What amount of gain or loss does Zhang realize on the transfer of the property to her corporation?
b What amount of gain or loss does Zhang recognize on the transfer of the property to her corporation?
c What is Zhangs tax basis in the stock she receives in the exchange?
d What is the corporations adjusted basis in each of the assets received in the exchange? Assume the corporation assumed a mortgage of $ attached to the building and land. Assume the fair market value of the building is now $ and the fair market value of the land is $ The fair market value of the stock remains $
e How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts?
Assume the corporation assumed a mortgage of $ attached to the building and land. Assume the fair market value of the building is now $ and the fair market value of the land is $ The fair market value of the stock remains $
f What is Zhangs tax basis in the stock she receives in the exchange?
Assume the corporation assumed a mortgage of $ attached to the building and land. Assume the fair market value of the building is now $ and the fair market value of the land is $ The fair market value of the stock remains $
g What is the corporations adjusted basis in each of the assets received in the exchange?
Essentials Of Federal Taxation 2019
ISBN: 9781260190045
10th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver