Required information

Problem $19-41(LO19-2)(Static)$

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

Sam and Devon agree $togo$ into business together selling college$-$licensed clothing. According $to$ the agreement, Sam

will contribute inventory valued $at$ $$100,000in$ return for $80$ percent $of$ the stock $in$ the corporation. Sam's tax basis $in$ the

inventory $is$ $$60,000.$ Devon will receive $20$ percent $of$ the stock $in$ return for providing accounting services $to$ the

corporation $(these$ qualify $as$ organizational expenditures$).$ The accounting services are valued $at$ $$25,000.$

Note: Negative amounts should $be$ indicated $by$ a minus sign. Leave $no$ answer blank. Enter zero $if$ applicable.

Problem $19-41$ Part $f(Static)$

$f.$ Assume Devon received $25$ percent $of$ the stock $in$ the corporation $in$ return for his services.

What $is$ Sam's tax basis $in$ the stock received $in$ return for the contribution $of$ property $to$ the corporation?

Answer $is$ complete but not entirely correct.