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From Jane: Adjusted Basis Fair Market Value $360,000 40,000 Cash $360,000 Personal Services -0- From Walt Equipment (depreciation claimed $100,000) $240,000 $370,000

From Jane: Adjusted Basis Fair Market Value $360,000 40,000 Cash $360,000 Personal Services -0- From Walt Equipment (depreciation claimed $100,000) $240,000 $370,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Four individuals form Chicka Corporation under § 351. Two of these individuals, Jane and Walt, made the following contributions:

Both Jane and Walt receive stock in Chicka Corporation equal to the value of their investments. Required:

a. What is Jane’s recognized income/loss b. What is Walt’s recognized gain/loss

From Jane: Adjusted Basis Fair Market Value $360,000 40,000 Cash $360,000 Personal Services -0- From Walt Equipment (depreciation claimed $100,000) $240,000 $370,000
Transcribed Image Text:From Jane: Adjusted Basis Fair Market Value $360,000 40,000 Cash $360,000 Personal Services -0- From Walt Equipment (depreciation claimed $100,000) $240,000 $370,000
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