Cheatem, Steele & Run are unrelated individuals. In September of the preset year, they decide to...

Transcribed Image Text:

Cheatem, Steele & Run are unrelated individuals. In September of the preset year, they decide to form Rob Em Blind Corporation. Cheatem contributes a building & land with a basis of $35,000 & a FMV of $100,000. Steele contributes machinery with a basis of $55,000.00 & A FMV of $100,000.00. Run contributes $100,000 in cash. Cheatem, Steele & Run receive 1,000 shares of the single class of Rob Em Blind's par $100.00 common stock. Assume each share is worth $100. a) Do any or all of the shareholders realize and recognize gain or loss on this transaction? b) What is Cheatem's adjusted basis in his shares? c) What is Steele's adjusted basis in his shares? d) What is Run's adjusted basis in his shares? e) What is Rob Em Blind's adjusted basis in the land in the building & land contributed by Cheatem? f) What is Rob Em Blind's adjusted basis in the machinery contributed by Steele? g) How if at all, would nay of your answers to (a) through (f) change if the fate s were modified so that: (i) (ii) (iii) (iv) (v) the stock received were no par the three shareholders each received $50,00.00 worth of common stock & $50,000.00 worth of preferred stock instead of $100,000.00 of common stock? the three shareholders each received $50,00.00 worth of Rob Em's bonds & $50,000.00 worth of preferred stock instead of $100,000.00 of common stock? Cheatem & Steele each received $100,000.00 of Rob Em's common stock & Run received $100,000.00 worth of preferred stock Cheatem & Steele each received $100,000.00 of Rob Em's common stock & Run received $100,000.00 worth of bonds Cheatem, Steele & Run are unrelated individuals. In September of the preset year, they decide to form Rob Em Blind Corporation. Cheatem contributes a building & land with a basis of $35,000 & a FMV of $100,000. Steele contributes machinery with a basis of $55,000.00 & A FMV of $100,000.00. Run contributes $100,000 in cash. Cheatem, Steele & Run receive 1,000 shares of the single class of Rob Em Blind's par $100.00 common stock. Assume each share is worth $100. a) Do any or all of the shareholders realize and recognize gain or loss on this transaction? b) What is Cheatem's adjusted basis in his shares? c) What is Steele's adjusted basis in his shares? d) What is Run's adjusted basis in his shares? e) What is Rob Em Blind's adjusted basis in the land in the building & land contributed by Cheatem? f) What is Rob Em Blind's adjusted basis in the machinery contributed by Steele? g) How if at all, would nay of your answers to (a) through (f) change if the fate s were modified so that: (i) (ii) (iii) (iv) (v) the stock received were no par the three shareholders each received $50,00.00 worth of common stock & $50,000.00 worth of preferred stock instead of $100,000.00 of common stock? the three shareholders each received $50,00.00 worth of Rob Em's bonds & $50,000.00 worth of preferred stock instead of $100,000.00 of common stock? Cheatem & Steele each received $100,000.00 of Rob Em's common stock & Run received $100,000.00 worth of preferred stock Cheatem & Steele each received $100,000.00 of Rob Em's common stock & Run received $100,000.00 worth of bonds