Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in...
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Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted bases: Adjusted FMV Basis Inventory $ 84,000 $ $ 42,000 Building 630,000 420,000 Land Total 966,000 1,680,000 1,260,000 $1,722,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $1,580,000. The transaction met the requirements to be tax- deferred under 351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Assume the corporation assumed a mortgage of $1,780,000 attached to the building and land. Assume the fair market value of the building is now $1,050,000 and the fair market value of the land is $2,226,000. The fair market value of the stock remains $1,580,000. e. How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts? Gain or loss recognized Assume the corporation assumed a mortgage of $1,780,000 attached to the building and land. Assume the fair market value of the building is now $1,050,000 and the fair market value of the land is $2,226,000. The fair market value of the stock remains $1,580,000. g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermediate calculations.) Inventory Building Land Adjusted basis Assume the corporation assumed a mortgage of $1,780,000 attached to the building and land. Assume the fair market value of the building is now $1,050,000 and the fair market value of the land is $2,226,000. The fair market value of the stock remains $1,580,000. e. How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts? Gain or loss recognized Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted bases: Adjusted FMV Basis Inventory $ 84,000 $ $ 42,000 Building 630,000 420,000 Land Total 966,000 1,680,000 1,260,000 $1,722,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $1,580,000. The transaction met the requirements to be tax- deferred under 351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Assume the corporation assumed a mortgage of $1,780,000 attached to the building and land. Assume the fair market value of the building is now $1,050,000 and the fair market value of the land is $2,226,000. The fair market value of the stock remains $1,580,000. e. How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts? Gain or loss recognized Assume the corporation assumed a mortgage of $1,780,000 attached to the building and land. Assume the fair market value of the building is now $1,050,000 and the fair market value of the land is $2,226,000. The fair market value of the stock remains $1,580,000. g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermediate calculations.) Inventory Building Land Adjusted basis Assume the corporation assumed a mortgage of $1,780,000 attached to the building and land. Assume the fair market value of the building is now $1,050,000 and the fair market value of the land is $2,226,000. The fair market value of the stock remains $1,580,000. e. How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts? Gain or loss recognized
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Related Book For
Essentials Of Federal Taxation 2019
ISBN: 9781260190045
10th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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