Sasha transfers furniture and fixtures having a $45,000 basis and a $105,000 FMV and $30,000 in...

  

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Sasha transfers furniture and fixtures having a $45,000 basis and a $105,000 FMV and $30,000 in cash to Mary's Bar and Grill in exchange for 100 shares of stock. The fixed assets originally cost $150,000 and is subjecct to $84,000 liability which the Corporation assumes. Sam contributed $150,000 of cash in exchange for the remaining 100 shares of stock. a) What amount of income/gain that Sasha must recoginize? b) What is Sasha's basis in the stock? c) What is Mary's basis in the furniture & fixtures? Sasha transfers furniture and fixtures having a $45,000 basis and a $105,000 FMV and $30,000 in cash to Mary's Bar and Grill in exchange for 100 shares of stock. The fixed assets originally cost $150,000 and is subjecct to $84,000 liability which the Corporation assumes. Sam contributed $150,000 of cash in exchange for the remaining 100 shares of stock. a) What amount of income/gain that Sasha must recoginize? b) What is Sasha's basis in the stock? c) What is Mary's basis in the furniture & fixtures?

Answer rating: 100% (QA)

a To determine the amount of incomegain that Sasha must recognize we need to compare the fair market ... View the full answer