Chock My Wark

Section $351$ is mandatory if a transaction satisfies the provision's requirements. The three requirements for nonrecognition of gain or loss under $$

$351$ are that $(1)$ property is transferred $(2)$ in exchange for stock and $(3)$ the property transferors are in control of the corporation after the

exchange.

b$.$ What basis do Mar$$a and Bob have in the Robin Corporation stock?

Mar$$a has a basis of &

$,$ and Bob has a basis of $!$

$x$ in the stock.Problem $18-32($Algorithmic$)($LO$.1,2)$

Mar$$a and Bob form Robin Corporation. Mar$$a transfers property worth $$195,000($basis of $$68,250)$ for $70$ shares in Robin Corporation. Bob receives $30$ shares for property worth $$78,000($basis of $$15,600)$ and for legal services $($worth $$7,800)$ in organizing the corporation.

If there is no gain or loss, enter $"0"$ for the amount.

Question Content Area

a$.$ What gain or income, if any, will the parties recognize on the transfer?

Mar$$a recognizes

a capital gain

of $fill in the blank $658$d$65$fe$403$bf$8$c$\_2$

$.$ Bob recognizes

of $fill in the blank $658$d$65$fe$403$bf$8$c$\_4$

$.$

Question Content Area

b$.$ What basis do Mar$$a and Bob have in the Robin Corporation stock?

Mar$$a has a basis of $fill in the blank $74328$c$08$bfb$2005\_1$

$,$ and Bob has a basis of $fill in the blank $74328$c$08$bfb$2005\_2$

in the stock.

Question Content Area

c$.$ What is Robin Corporation's basis in the property and services it received from Mar$$a and Bob?

Robin Corporation has a basis of $fill in the blank bc$60$ebfd$5079$f$96\_1$

in the property Mar$$a transferred and a basis of $fill in the blank bc$60$ebfd$5079$f$96\_2$

in the property Bob transferred.