Bob and Bill form Star Corporation with the followinginvestments. Bob transfers machinery (basis of $36,000and fair market value of $74,000) and Bill transfers land(basis of $19,000 and fair market value of $52,000) andservices rendered (worth $22,000) in organizing thecorporation. Each is issued 25 shares in Star Corporation.With respect to the transfers:Bill has a basis of $41,000 in the 25 shares he acquires in Star Corporation.Star Corporation has a basis of $41,000 in the land transferred by Bill.Bob has no recognized gain; Bill recognizes income/gain of $55,000.Neither Bob nor Bill has recognized gain or income on the transfers.None of these.

Corporations are formed by contribution of the owners and contribution may be in the form of land,…

Bob and Bill form Star Corporation with the follow investments. Bob transfers machinery (basis of $36 and fair market value of $74,000) and Bill transfers (basis of $19,000 and fair market value of $52,000) services rendered (worth $22,000) in organizing th corporation. Each is issued 25 shares in Star Corpo With respect to the transfers:

Bob and Bill form Star Corporation with the follow investments. Bob transfers machinery (basis of $36 and fair market value of $74,000) and Bill transfers (basis of $19,000 and fair market value of $52,000) services rendered (worth $22,000) in organizing th corporation. Each is issued 25 shares in Star Corpo With respect to the transfers:

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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Question. 15
A and B form A and B corporation. A transferred a lot located in Western Maryland that has a Fair Market Value of $250,000 and a basis of $50,000 for fifty-percent of the stock in A and B. B transferred a building with a Fair Market Value (FMV) of $120,000 and a basis of $24,000. B also provided services worth $10,000 for 50% of the stock of A and B. Question: What are the tax consequences to A and to B as a result of these transactions? Be sure to discuss whether (a) Section 351 applies and the reason(s); and (b) what gain or loss or income if any that A and B would recognize as a consequence of these transactions?
Matthew and Hein sell to Melges a 1/3 interest in the Matthew - Hein partnership. Melges will pay Matthew and Hein each $141400 for admission into the organization. Before this transaction, Matthew and Hein show capital balances of $209000 each. The journal entry to record the admission of Melges will O show a credit to Melges, Capital for $282800. O show a debit to Hein, Capital for $141400. show a debit to Cash for $282800. O not show a debit to Cash.
Jorge, Jamul and Jihad are partners in a Limited partnership. Jorge and Jamil are general partners, while Jihad is a limited partner share capital balance of $50,000, $45,000and $20,000 respectively. Sharing the profits and losses equally, and they liquidated the firm, Realization Account was 90000 debit balance. What is Jorge's share from the firm cash?
please answer thanks.
Elaine, James, and Jeremy form Forest Corporation by transferring the following items to the corporation: Items transferred Basis Fair Market Value Number of Shares Issued From Elaine: Cash $60,000 $60,000 200 shares Equipment 30,000 340,000 From James: Land 100,000 540,000 200 shares Mortgage 140,000 140,000 From Jeremy: Office equipment 50,000 260,000* 100 shares Besides the receiving 100 shares of stock,…
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Check my answer. Seth, Pete, Cara, and Jen form Kingfisher Corporation with the following consideration consideration transferred From Seth Inventory Basis of transferor $30,000 FMV $96,000 30 shares From Cara Basis of transferor $15,000 FMV $15,000 30 shares From Pete Basis of transfer $45,000 FMV $99,000 Depr of equip $30,000 30 shares *Seth receives $6,000 in cash in addition to the 30 shares. Seth's recognized gain or loss FMV-basis= 96,000-30,000=66,000 cash received = $6,000 lessor of the two =$6,000 Seth's recognized gain Seth’s basis in the Kingfisher Corporation stock. Basis of inventory given+ recognized gain = 30,000+6,000=36,000 basis of stock received or is it $30,000+6,000-6,000 $30,000 basis of stock
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