Corporation Formation: Fand V, retired carpenters, decided to organize the SWS Corporation which would build wooden swing sets for children. The items transferred and received were as follows: Transferor Asset Market Value Transferor's Basis Shares Received Transferred F Equipment $20,000 S18,000 50 V Warehouse 25,000 10,000 50 Mortage on warehouse 5,000 a. Compute the gain or loss recognized by Fand V b. Compute the gain or loss recognized by SWS Inc. c. Compute the basis of the stock received by Fand V. d. Compute the bases of the assets received by SWS Inc.

Corporation Formation: Fand V, retired carpenters, decided to organize the SWS Corporation which would build wooden swing sets for children. The items transferred and received were as follows: Transferor Asset Market Value Transferor's Basis Shares Received Transferred F Equipment $20,000 S18,000 50 V Warehouse 25,000 10,000 50 Mortage on warehouse 5,000 a. Compute the gain or loss recognized by Fand V b. Compute the gain or loss recognized by SWS Inc. c. Compute the basis of the stock received by Fand V. d. Compute the bases of the assets received by SWS Inc.

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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Subject: accounting
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FACTS / DATA / GIVEN: . Тахрауer: Receipts/Earnings/balances during the taxable period: Resident citizen Description Winnings from gambling Interest on bank deposits Increase in fair value of lands held for Amount P900,000 20,000 500,000 investment Share in partnership income credited to capital account in the partnership Gross income from profession 150,000 200,000 COMPUTE: Taxable Income O A. 350,000 О в. 870,000 ОС. 1,270,000 O D. 1,770,000
Answer
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