Ralph contributed equipment to Master Film Corp. as part of a 351 transaction. The equipment had an A/B of $150,000 and a FMV of $105,000. Ralph received 25 shares of the corporation with a FMV of $105,000. Calculate the realized and recognized loss on the transfer; Ralph's A/B in the stock and the corporation's A/B in the equipment.

Answer rating: 100% (QA)

To calculate the realized and recognized loss on the transfer Ralphs adjusted basis AB in the stock ... View the full answer