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Problem 19-53 (LO 19-2) (Static)

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[The following information applies to the questions displayed below.] Johanne transferred investment property to S&J Corporation in exchange for 60 percent of the S&J Corporation stock (60 shares valued at $115,000). The propertys fair market value was $190,000 and its adjusted tax basis to Johanne was $60,000. The investment property was subject to a $75,000 mortgage that S&J Corporation assumed on the transfer (not treated as boot). (Leave no answer blank. Enter zero if applicable.)

Problem 19-53 Part a (Static)

a. Assuming the transfer qualifies under 351, what are the amount and character of the gain Johanne must recognize on the exchange?

b. What is Johannes tax basis in the S&J stock he received in the exchange?

c. Assume that in addition to the investment property, Johanne transferred inventory with a fair market value of $30,000 and an adjusted tax basis of $20,000 for additional S&J Corporation stock. What are the amount and character of gain Johanne must recognize on the exchange of the investment property and inventory for stock?

d. Assume that in addition to the investment property, Johanne transferred inventory with a fair market value of $30,000 and an adjusted tax basis of $20,000 for additional S&J Corporation stock. What is Johannes basis in the S&J stock he received in the exchange?

e. Assume the original facts except that the liability assumed by S&J Corporation would give rise to a deduction when paid. What are the amount and character of gain Johanne must recognize on the exchange?

f. Assume the original facts except that the liability assumed by S&J Corporation would give rise to a deduction when paid. What is Johannes basis in the S&J stock he received in the exchange?