Dr. cole m.d has practiced medicine as a sole proprietorship for many years. during jan 2021, dr cole, who uses the cash method of accounting decided to incorporate his practice in order to achieve limited liability. in exchange for stock, dr cole transferred the following assets and liabilities

Cash: $40,000

Unrealized accounts receivable: 300,000

Equipment (basis): 10,000

Building (basis): 50,000

Accounts payable (for routine deductible expenditures): 150,000

what is Dr cole's recognized gain and basis in his stock following the transfer?

Answer rating: 100% (QA)

To determine Dr Coles recognized gain and basis in his stock following the transfer we need to calcu... View the full answer