Hans Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for100 percent of the corporation's stock. The property transferred to the corporation had the following fair market valuesand adjusted tax bases:InventoryBuildingLandTotalbasisFMV$20,000150,000210,000$ 400,000The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of thecorporation's stock received in the exchange was $300,000. The transaction met the requirements to be tax deferredunder $351. (Negative amount should be indicated by a minus sign. Leave no answer blonk. Enter zero if applicable.)Assume the corporation assumed a mortgage of $500,000 attached to the building and land. Assume the fair market value of thebuilding is now $250,000 and the fair market value of the land is $530,000. The fair market value of the stock remains $300,000.Aliyustedg. What is the corporation's adjusted tax basis in each of the assets received in the exchange? (Do not round intermediatecalculations.)Adjusted TaxBasis$10,000100,000100,000$410,000Inventory10,000Building50,000 sLand290,000

The adjusted tax basis of the assets which has been received in exchange of the stocks is the basis…

Answered: 9. What is the corporation's adjusted…

9. What is the corporation's adjusted tax basis in each of the assets received in the exchange? (Do not round intermediate calculations.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 21P

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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: FMV Adjusted Basis Inventory 20,000 10,000 Building 150,000 100,000 land 230,000 300,000 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 $300,000. 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.) a. What is the corporation's adjusted basis in each of the assets received in the exchange? Assume the corporation assumed a mortgage of $500,000…
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