Angie and Brad form Cats Are Us, Inc. Angie contributes $120,000 cash for 60% of the stock.
Question:
Angie and Brad form Cats Are Us, Inc. Angie contributes $120,000 cash for 60% of the stock. Brad contributes an asset with an FMV of $90,000 and an adjusted basis of $30,000 for 40% of the stock. Brad also receives $10,000 cash from the corporation. What is the corporation’s basis in the asset received from Brad?
a. $10,000
b. $30,000
c. $40,000
d. $90,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
South-Western Federal Taxation 2019 Comprehensive
ISBN: 9781337703017
42th Edition
Authors: David M. Maloney, William A. Raabe, William H. Hoffman, James C. Young
Question Posted: