Assume that Adams, Block & Smith, having formed Manufacturing Corp. on February 1, 2019, and having received
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Question:
a. What are the tax consequences to Adams, Block, Smith, Jones and Manufacturing Corp. under these facts?
b. Assume that Adams, Block & Smith each contribute an additional $1,000 on April 1, 2019, to Mfg. Corp. These contributions result in each of them receiving an additional 5 shares of common stock and 5 shares of preferred stock. The additional contributions are directly related to Jones' contribution of his land and building. How would this affect your answer to part (a)?
c. If Jones' building had a FMV of $400,000 and he received 2,000 shares of voting common and 2,000 shares of non-voting preferred, how would that affect your answer to part (a)?
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date: