8. A. an individual, owns all 100 shares of X Co. A's basis in these shares is si per share (S100 tota). 8a) A transfers 10 shares to X in exchange for cash of 10. How will this transaction be treated for tax purposes? 8b) Suppose instead that there are 2 shareholders, A and B. Each owns 50 shares of X Co. A transfers all 50 shares to X in exchange for cash of 50. How will this transaction be treated? 8c) Same as (b) except that A and B are husband and wife. Would this change your answer?
8. A. an individual, owns all 100 shares of X Co. A's basis in these shares is si per share (S100 tota). 8a) A transfers 10 shares to X in exchange for cash of 10. How will this transaction be treated for tax purposes? 8b) Suppose instead that there are 2 shareholders, A and B. Each owns 50 shares of X Co. A transfers all 50 shares to X in exchange for cash of 50. How will this transaction be treated? 8c) Same as (b) except that A and B are husband and wife. Would this change your answer?
Chapter4: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 41P
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![8. A, an individual, owns all 100 shares of X Co. A's basis in these shares is $1 per share ($100 total).
8a) A transfers 10 shares to X in exchange for cash of 10. How will this transaction be treated for tax
purposes?
8b) Suppose instead that there are 2 shareholders, A and B. Each owns 50 shares of X Co. A transfers all 50
shares to X in exchange for cash of 50. How will this transaction be treated?
8c) Same as (b) except that A andBare husband and wife. Would this change your answer?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbb839829-e745-4aac-a455-89ff58cbe6bd%2F399005b6-6c70-4173-ad10-67b44597f837%2Fhjqc5eh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:8. A, an individual, owns all 100 shares of X Co. A's basis in these shares is $1 per share ($100 total).
8a) A transfers 10 shares to X in exchange for cash of 10. How will this transaction be treated for tax
purposes?
8b) Suppose instead that there are 2 shareholders, A and B. Each owns 50 shares of X Co. A transfers all 50
shares to X in exchange for cash of 50. How will this transaction be treated?
8c) Same as (b) except that A andBare husband and wife. Would this change your answer?
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