Curly, Larry, Moe and Serafina incorporated Stooges Corp. As part of an integrated transaction, they each contributed the following: Curly contributed cash of $100,000 in exchange for 10 shares of Stooges Corp. stock Larry contributed equipment (FMV = $100,000; basis = $147,539) in exchange for 10 shares of Stooges Corp. stock Moe contributed a building (FMV = $120,000; basis = $59,820) in exchange for 10 shares of Stooges Corp. stock and $20,000 cash Serafina contributed land (FMV = $150,000; basis = $144,889) in exchange for 10 shares of Stooges Corp. stock and $50,000 cash There are 40 total shares of Stooges Corp. outstanding (these are the 40 shares owned by Curly, Larry, Moe and Serafina). Each share is worth $10,000. No tax elections were made. What is Stooges Corp.'s basis in the land?

Curly, Larry, Moe and Serafina incorporated Stooges Corp. As part of an integrated transaction, they each contributed the following: Curly contributed cash of $100,000 in exchange for 10 shares of Stooges Corp. stock Larry contributed equipment (FMV = $100,000; basis = $147,539) in exchange for 10 shares of Stooges Corp. stock Moe contributed a building (FMV = $120,000; basis = $59,820) in exchange for 10 shares of Stooges Corp. stock and $20,000 cash Serafina contributed land (FMV = $150,000; basis = $144,889) in exchange for 10 shares of Stooges Corp. stock and $50,000 cash There are 40 total shares of Stooges Corp. outstanding (these are the 40 shares owned by Curly, Larry, Moe and Serafina). Each share is worth $10,000. No tax elections were made. What is Stooges Corp.'s basis in the land?

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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