Carla incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in...
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Carla incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and tax-adjusted bases: FMV Tax-Adjusted Basls Inventory Building Land $ 20,000 150,000 $ 10,000 100,000 250,000 $420,000 300,000 $410,000 Total The corporation also assumed a mortgage of $120,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $300,000. a. What amount of gain or loss does Carla realize on the transfer of the property to her corporation? Amount realized b. What amount of gain or loss does Carla recognize on the transfer of the property to her corporation? Gain or loss recognized c. What is Carla's basis in the stock she receives in her corporation? Basis in the stock Carla incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and tax-adjusted bases: FMV Tax-Adjusted Basls Inventory Building Land $ 20,000 150,000 $ 10,000 100,000 250,000 $420,000 300,000 $410,000 Total The corporation also assumed a mortgage of $120,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $300,000. a. What amount of gain or loss does Carla realize on the transfer of the property to her corporation? Amount realized b. What amount of gain or loss does Carla recognize on the transfer of the property to her corporation? Gain or loss recognized c. What is Carla's basis in the stock she receives in her corporation? Basis in the stock
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Related Book For
Essentials of Federal Taxation 2019
ISBN: 9781260190045
10th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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