Question: QUESTION 7 (CHAPTER 18) Brian Johns is contributing real estate to a wholly-owned corporation during formation. At the time of formation the real estate is

QUESTION 7 (CHAPTER 18) Brian Johns is contributing real estate to

QUESTION 7 (CHAPTER 18) Brian Johns is contributing real estate to a wholly-owned corporation during formation. At the time of formation the real estate is worth $450,000, Brian's basis is $200,000, and the real estate is subject to two mortgages. One mortgage is $90,000 (incurred 10 years prior to corporate formation) and the other is $40,000 (incurred 7 years prior to corporate formation). (a) What is Brian's recognized gain, if any? (b) Assume, instead, that Brian took out the $40,000 mortgage one day before contributing the property to the corporation. What is Brian recognized gain, if any

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

QUESTION 7 ( CHAPTER 1 8 ) Brian Johns is contributing real estate to a wholly - owned corporation during formation in exchange for all of its stock. At the time of formation, the real estate is...

Brian Johns is contributing real estate to a wholly-owned corporation during formation. At the time of formation the real estate is worth $350,000, Brian's basis is $180,000, and the real estate is...

Brian Johns is contributing real estate to a wholly-owned corporation during formation. At the time of formation the real estate is worth $340,000, Brians basis is $200,000, and the real estate is...

Brian Johns is contributing real estate to a wholly-owned corporation during formation in exchange for all of its stock. At the time of formation, the real estate is worth $450,000, Brian's basis is...

Brian Johns is contributing real estate to a wholly - owned corporation during formation in exchange for all of its stock. At the time of formation, the real estate is worth $ 7 5 0 , 0 0 0 , Brian s...

Brian Johns is contributing real estate to a wholly - owned corporation during formation. At the time of formation the real estate is worth $ 3 5 0 , 0 0 0 , Brian\'s basis is $ 1 8 0 , 0 0 0 , and...

Brian Johns is contributing real estate to a wholly - owned corporation during formation in exchange for all of its stock. At the time of formation, the real estate is worth $ 4 5 0 , 0 0 0 , Brian s...

4) Parktown Realty Inc developed an upscale condominium complex. On October 1, Miranda Wine signed an offer to purchase one of the units. Part of that document said, "This offer is irrevocable by the...

I need theanswers and solutions. Please read the following carefully. For each question on the exam, you should assume that: 1. unless expressly stated to the contrary, all events occurred in "the...

On 1 July 2014, Robert plc acquired 80% of the ordinary share capital of Plant Limited by way of a share exchange. Robert plc issued five of its own ordinary shares for every two ordinary shares...

Write the number in scientific notation 0.0314 x 10 -2 Write the number in standard notation 8.5 x 10 2 Write the numbers in scientific notation and perform the operations. Give the answer in...

Question 2 Which of the following describes financing in order to acquire control of assets? Cash purchase Borrowing Leasing All of the above

Discuss the policy statement concept and identify three focus areas / procedures where a clearpolicy statement / operating procedure

Explain how a need for rationalization and standardization over foreign operations varies with the business strategy and distinctive competencies of an MNC.

Describe the difference between strategic international human resource management (SIHRM) and international human resource management (IHRM)

Explain how developments in global capitalism affect corporate and human resources strategies within multinational corporations