Required information

Problem $08-46($LO $08-2)($Static$)$

Skip to question

$[$The following information applies to the questions displayed below.$]$

Nareh joined Jim in forming DBJ Corporation. Nareh contributed appreciated land for $90$ percent of the stock in DBJ$.$ Jim received $10$ percent of the DBJ stock valued at $$15,000.$ Determine Jim's tax consequences in each of the following alternative scenarios.

Note: Leave no answer blank. Enter zero if applicable.

Problem $08-46$ Part b $($Static$)$

b$.$ Jim contributed the rights to a patent he owned to DBJ in exchange for the DBJ stock. The patent was worth $$15,000$ and Jim's basis in the patent was $$8,000.$ How much gain does Jim recognize on the exchange? What is Jim's basis in the DBJ stock?