General Accounting Question Diego transfers real estate with an adjusted basis of$446,000 and a fair market value of $624,400 to anewly formed corporation in exchange for 100% ofthe stock. The corporation assumes liability for thetransferred real estate in the amount of $530,740.Determine Diego's recognized gain on the transfer andthe basis for his stock.

Step 1: Define Adjusted BasisThe change to the value of any asset or security recorded at the…

Answered: Diego transfers real estate with an…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 4CE

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John transfers a property (A/B $10,000, FMV $50,000) to Brown Corp. in exchange for 100% of the Brown stock, which is worth $50,000. The property is subject to a liability of $20,000, which Brown assumes. The transfer is for business purpose. The $20,000 liability is also for business purpose. What is John’s recognized gain? What is John’s stock basis in the Brown corporation What is Brown’s basis in the property?
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Check my answer. Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to Swift Corporation for 90% of the stock. The property is subject to a liability of $60,000, which Swift assumes. What is the basis of the Swift stock to Adam? Section 357 provides when the acquiring corporation a liability is a section 351 transaction, the liability is not treated as a boot received for gain purposes, but is used in determining the basis of the stock received. The basis of the property transferred is $50,000, Liability assumed is $60,000. The basis of the stock received is $0.0 What is the basis of the property to Swift Corporation? The basis of the property received by the corporation is greater than the adjusted basis or the debt assumed. Swifts basis in the property is $60,000
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Tristan transfers property with a tax basis of $1,160 and a falr market value of $1,720 to a corporation In exchange for stock with a falr market value of $1,160 and $390 In cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $170 on the property transferred. What Is the corporation's tax basis In the property recelved In the exchange? Multiple Cholce $1,720 $1,550 $1,330 $1,160
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Jocelyn contributes land with a basis of $39,500 and fair market value of $59,250 and inventory with a basis of $19,600 and fair market value of $29,400 in exchange for 100% of Zion Corporation stock. The land is subject to a $9,875 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange ________? tax-free under § 351 because the release of a liability________? treated as boot under§ 357(a). As a result, Jocelyn has income of $fill in the blank _____? and a basis $fill in the blank 4______? in her stock.
Karen, in forming a new corporation, transfers land to the corporation in exchange for 100 percent of the stock of the corporation. Karen's basis in the land is $1,680,000, and the corporation assumes a liability on the property in the amount of $1,848,000. The stock received by Karen has a fair market value of $3,360,000. If an amount is zero, enter "0". a. What is the amount of gain or loss that must be recognized by Karen on this transfer?$ b. What is the amount of Karen's basis in the corporation's stock?$ c. What is the amount of the corporation's basis in the land?$

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