28. Lindsay and Malcolm form Yellow Corporation. Lindsay transfers equipment worth $950,000 (basis of $200,000) and cash of $50,000 to Yellow Corporation for 50% of its stock. Malcolm transfers a building and land worth $1,050,000 (basis of $400,000) for 50% of Yellow's stock and $50,000 in cash. a. Lindsay recognizes no gain; Malcolm recognizes gain of $50,000. b. Lindsay recognizes a gain of $50,000; Malcolm has no gain. c. Neither Lindsay nor Malcolm recognizes gain.

28. Lindsay and Malcolm form Yellow Corporation. Lindsay transfers equipment worth $950,000 (basis of $200,000) and cash of $50,000 to Yellow Corporation for 50% of its stock. Malcolm transfers a building and land worth $1,050,000 (basis of $400,000) for 50% of Yellow's stock and $50,000 in cash. a. Lindsay recognizes no gain; Malcolm recognizes gain of $50,000. b. Lindsay recognizes a gain of $50,000; Malcolm has no gain. c. Neither Lindsay nor Malcolm recognizes gain.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 23CE

See similar textbooks

Similar questions

6
María and Bob form Robin Corporation. María transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $15,000 (basis of $3,000) and for legal services (worth $165,000) in organizing the corporation. a. What gain or income, if any, will the parties recognize on the transfer? María recognizes no gain or loss X of $ a gift X of $ 165,000 ✓. b. What basis do María María has a basis of $ 0 X and Bob recognizes a gain and Bob have in the Robin Corporation stock? 150,000 X, while Bob has a basis of $ 45,000 X in the stock. ✓of $ c. What is Robin Corporation's basis in the property and services it received from María and Bob? Robin Corporation has a basis of $ Bob transferred. 150,000 X in the property María transferred and a basis of $ 15,000 X and has 30,000 X in the property
Emma and Liam form Majestic Corporation. Emma transfers equipment worth $475,000 (basis of $100,000) and cash of $25,000 to Majestic Corporation for 50% of its stock. Liam transfers a building and land worth $525,000 (basis of $200,000) for 50% of Majestic's stock and $25,000 cash. Discuss the result of these transfers. (a) Emma recognizes a gain of $375,000; Liam recognizes a gain of $325,000. (b) Emma recognizes a gain of $25,000; Liam recognizes no gain. (c) Neither Emma nor Liam recognizes gain. (d) Emma recognizes no gain; Liam recognizes a gain of $25,000. (e) None of the above
María and Bob form Robin Corporation. María transfers property worth $100,000 with a basis of $35,000 for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $40,000 with a basis of $8,000 and legal services worth $4,000 in organizing the corporation. If there is no gain or loss, enter "0" for the amount. a. What gain or income, if any, will the parties recognize on the transfer? María recognizes María has a basis of $ b. What basis do María and Bob have in the Robin Corporation stock? of $ 1 Robin Corporation has a basis of $ Bob recognizes and Bob has a basis of $ c. What is Robin Corporation's basis in the property and services it received from María and Bob? in the property Bob transferred. in the stock. in the property María transferred and a basis of
María and Bob form Robin Corporation. María transfers property worth $130,000 (basis of $45,500) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $52,000 (basis of $10,400) and for legal services (worth $5,200) in organizing the corporation. If there is no gain or loss, enter "O" for the amount. a. What gain or income, if any, will the parties recognize on the transfer María recognizes no capital gain or loss of $............. Bob. recognizes ordinary income of $...? b. What basis do María and Bob have in the Robin Corporation stock? María has a basis of $....., and Bob has a basis of $..............the stock. c. What is Robin Corporation's basis in the property and services it received from María and Bob? Robin Corporation has a basis of $............ the property María transferred and a basis of $........ in the property Bob transferred.
María and Bob form Robin Corporation. María transfers property worth $420,000 with a basis of $150,000 for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $165,000 with a basis of $30,000 and legal services worth $15,000 in organizing the corporation. If there is no gain or loss, enter "0" for the amount. a. What gain or income, if any, will the parties recognize on the transfer? María recognizes no gain or loss Feedback of $ Bob recognizes ordinary income of $ Check My Work Section 351 is mandatory if a transaction satisfies the provision's requirements. The three requirements for nonrecognition of gain or loss under § 351 are that (1) property is transferred (2) in exchange for stock and (3) the property transferors are in control of the corporation after the exchange. b. What basis do María and Bob have in the Robin Corporation stock? María has a basis of $ Feedback Check My Work Incorrect , and Bob has a basis of $ 420,000 X in the stock. c. What is Robin…
Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $165,000 (basis of $30,000) and for legal services (worth $15,000) in organizing the corporation. ations What gain or income, if any, will the parties recognize on the transfer? b. What basis do Ann and Bob have in the Robin Corporation stock? What is Robin Corporation's basis in the property and services it received from Ann and Bob? a. C.
See Attached. 5
See Attached. 12
See attached. #4
11.
Question. 15