12 Required information Problem 19-39 (LO 19-2) [The following information applies to the questions displayed below.] Part 7 of 7 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: polnts Adjusted Basis $ 24,000 240,000 FMV $ 48,000 Inventory Building 360,000 552,000 Land 720,000 eBook Total $960,000 $984,000 References 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 $860,000. 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.) Problem 19-39 Part g Assume the corporation assumed a mortgage of $1,060,000 attached to the building and land. Assume the fair market value of the building is now $600,000 and the fair market value of the land is $1,272,000. The fair market value of the stock remains $860,00. 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
12 Required information Problem 19-39 (LO 19-2) [The following information applies to the questions displayed below.] Part 7 of 7 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: polnts Adjusted Basis $ 24,000 240,000 FMV $ 48,000 Inventory Building 360,000 552,000 Land 720,000 eBook Total $960,000 $984,000 References 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 $860,000. 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.) Problem 19-39 Part g Assume the corporation assumed a mortgage of $1,060,000 attached to the building and land. Assume the fair market value of the building is now $600,000 and the fair market value of the land is $1,272,000. The fair market value of the stock remains $860,00. 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required information
Problem 19-39 (LO 19-2)
[The following information applies to the questions displayed below.]
Part 7 of 7
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:
polnts
Adjusted
Basis
$ 24,000
240,000
FMV
$ 48,000
Inventory
Building
360,000
552,000
Land
720,000
eBook
Total
$960,000
$984,000
References
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 $860,000. 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.)
Problem 19-39 Part g
Assume the corporation assumed a mortgage of $1,060,000 attached to the building and land. Assume the fair market value of the
building is now $600,000 and the fair market value of the land is $1,272,000. The fair market value of the stock remains $860,00.
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F65b44aa5-5b0b-412e-9ae8-40bddaecbdaf%2F6601e58c-e538-4ba3-a29c-4f1d560fd352%2Fc84f4ch.png&w=3840&q=75)
Transcribed Image Text:12
Required information
Problem 19-39 (LO 19-2)
[The following information applies to the questions displayed below.]
Part 7 of 7
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:
polnts
Adjusted
Basis
$ 24,000
240,000
FMV
$ 48,000
Inventory
Building
360,000
552,000
Land
720,000
eBook
Total
$960,000
$984,000
References
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 $860,000. 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.)
Problem 19-39 Part g
Assume the corporation assumed a mortgage of $1,060,000 attached to the building and land. Assume the fair market value of the
building is now $600,000 and the fair market value of the land is $1,272,000. The fair market value of the stock remains $860,00.
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
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