accounting system for B, valued at $20,000. BT issues 1,000 shares of common stock to its two shareholders. How many shares should Mr. Boyd and Ms. Tuck each receive?
accounting system for B, valued at $20,000. BT issues 1,000 shares of common stock to its two shareholders. How many shares should Mr. Boyd and Ms. Tuck each receive?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mr. Boyd and Ms. Tuck decide to form a new corporation named BT Inc. Mr. Boyd transfers $20,000 cash, equipment (FMV $40,000; adjusted tax basis $41,500), and business inventory ($20,000 FMV; adjusted tax basis $12,000), and Ms. Tuck drafts the legal documents and designs the accounting system for B, valued at $20,000. BT issues 1,000 shares of common stock to its two shareholders.
How many shares should Mr. Boyd and Ms. Tuck each receive?
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