Question: Determine the effects of 351 for the following taxpayers. If an amount is zero, enter
Question:
Question:
Determine the effects of § 351 for the following taxpayers. If an amount is zero, enter "0".
a. Grady exchanges qualified property, basis of $12,000 and fair market value of $18,000, for 60% of the stock of Eadie Corporation. The other 40% of the stock is owned by Pedro, who acquired it five years ago. Because this transaction
meets | does not meet |
Item 1 |
the control of the corporation requirement, Grady has income of
$ | and | $ |
basis in his shares of stock.
b. Trey, Amy, and Erin incorporate their businesses by forming Whitehead Corporation. As part of a prearranged plan, Trey exchanges his qualified property (basis $500; fair market value $1,000) for 100 shares in Whitehead on May 9, 2014. Amy exchanges her qualified property (basis $1,800; fair market value $2,000) for 200 shares of Whitehead Corporation stock on May 12, 2014, and Erin exchanges her qualified property (basis $2,000; fair market value $3,000) for 300 shares in Green on March 5, 2014.
Because this transaction
meets | does not meet |
Item 4 |
the control of the corporation requirement, Trey has income of
$ | and | $ |
basis in his shares of stock, Amy has income of
$ | and | $ |
basis in her shares of stock, and Erin has income of
$ | and | $ |
basis in her shares of stock.
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young