Having trouble with B and C Exercise 18-1 (Algorithmic) (LO. 4)Roscoe contributes a personal use asset, adjusted basis $58,800 and fair market value $105,840, to a new business in which he is anowner. Determine Roscoe's recognized gain on the transfer and the basis of the asset to the business if the new operation is a:If the answer is zero enter '0'.a. Sole proprietorship.Does Roscoe recognize a gain or loss? No gain or lossAmount if gain or loss recognized: $0.The sole proprietorship's basis for the asset is $58,800b. Partnership in which Roscoe holds a 15% interest.Does Roscoe recognize a gain or loss? No gain or los5Amount if gain or loss recognized: $ IThe partnership's basis for the asset is $58,800c. Corporation in which Roscoe holds a 30% interest and all shareholders contrib-ute assets for stock in the transaction.Does Roscoe recognize a gain or loss? No gain or lossAmount if gain or loss recognized: $The corporation's basis for the asset is s58,800

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38,800 and fair market value $105,840, to a new business in which he is an Determine Roscoe's recognized gain on the transfer and the basis of the asset to the business if the new operation is a: answer is zero entor '0'

38,800 and fair market value $105,840, to a new business in which he is an Determine Roscoe's recognized gain on the transfer and the basis of the asset to the business if the new operation is a: answer is zero entor '0'

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 53P

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Having trouble with B and C

Exercise 18-1 (Algorithmic) (LO. 4)
Roscoe contributes a personal use asset, adjusted basis $58,800 and fair market value $105,840, to a new business in which he is an
owner. Determine Roscoe's recognized gain on the transfer and the basis of the asset to the business if the new operation is a:
If the answer is zero enter '0'.
a. Sole proprietorship.
Does Roscoe recognize a gain or loss? No gain or loss
Amount if gain or loss recognized: $
0.
The sole proprietorship's basis for the asset is $
58,800
b. Partnership in which Roscoe holds a 15% interest.
Does Roscoe recognize a gain or loss? No gain or los5
Amount if gain or loss recognized: $ I
The partnership's basis for the asset is $
58,800
c. Corporation in which Roscoe holds a 30% interest and all shareholders contrib-ute assets for stock in the transaction.
Does Roscoe recognize a gain or loss? No gain or loss
Amount if gain or loss recognized: $
The corporation's basis for the asset is s
58,800

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