Grady exchanges property with a basis of $12,000 and fair market value of $18,000 for 60% of the stock of Eadie Corporation. Pedro acquired the other 40% of the stock five years ago. Calculate Grady's current income, gain, or loss and the basis he takes in his shares of Eadie stock as a result of this transaction. Because this transaction and $ the control of the corporation requirement, Grady has basis in his shares of stock. of
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- Cameron owns all the stock of Connor Corporation, an S corporation. Cameon's basis for the 1,000 shares is $355,000. On June 25 of the current year (assume a non-leap year), Cameron gifts 100 shares of stock to his younger brother Chase, who has been working in the business for one year. Conner Corporation reports $350,000 of ordinary income for the current year. Requirement: What amount of income is allocated to Comeron? To Chase? (Use a 365-day year for computations. Do not round intermediary calculations. Only round the amount you enter in the input field to the nearest dollar.) Question content area bottom Part 1 Ordinary income allocated Cameron ChaseMaría and Bob form Robin Corporation. María transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $15,000 (basis of $3,000) and for legal services (worth $165,000) in organizing the corporation. a. What gain or income, if any, will the parties recognize on the transfer? María recognizes no gain or loss X of $ a gift X of $ 165,000 ✓. b. What basis do María María has a basis of $ 0 X and Bob recognizes a gain and Bob have in the Robin Corporation stock? 150,000 X, while Bob has a basis of $ 45,000 X in the stock. ✓of $ c. What is Robin Corporation's basis in the property and services it received from María and Bob? Robin Corporation has a basis of $ Bob transferred. 150,000 X in the property María transferred and a basis of $ 15,000 X and has 30,000 X in the propertyIn 2020, Martin and Rebecca formed White Corporation. Martin transfers real estate with an adjusted basis of $260,000 and a fair market value of $350,000 to the newly formed White Corporation in exchange for 75% of the common stock of White Corporation. The real estate was encumbered by a mortgage of $275,000 which White Corporation assumed. Rebecca contributed equipment with a fair market value of $35,000 and an adjusted basis of $15,000 in exchange for 25% of the common stock and a $10,000 bond. What is the amount of gain or loss realized and recognized by Martin on the transfer of the real estate? What basis does Martin take in White Corporation stock? What basis does White Corporation take in the real estate contributed by Martin? What is the amount of gain or loss realized and recognized by Rebecca on the transfer of the equipment? What basis does Rebecca take in White Corporation stock? What basis does White Corporation take in the equipment contributed by Rebecca?
- Multiple shareholders form a new corporation in exchange for stock with a fair market value of $1,000 per share. Marky transfers investment land (current fair market value of $35,000) that he purchased 10 year ago for $15,000. In exchange, Marky receives 30 shares of stock and $5,000 cash. Anders transfers a machine with a basis of $45,000 and a fair market value of $35,000. Anders receives 30 shares of stock and $5,000 cash. Emmy transfers a rental office building (current fair market value of $45,000) that she purchased 20 years ago for $60,000. Its current basis is $15,000 after recognition of $45,000 in depreciation expense. The corporation assumes the $20,000 balance on the original mortgage and Emmy receives 25 shares of stock from the corporation in the exchange. Jace provided the legal services to organize the corporation (value $5,000) and contributes $10,000 in cash in exchange for 15 shares of stock. How much gain does Emmy recognize? a. 0 b. $5,000 c. $15,000 d. $20,000…Matthew and Gabriella form Epsilon Corporation. Matthew transfers property (basis of $50,000 and fair market value of $40,000) while Gabriella transfers land (basis of $25,000 and fair market value of $30,000) and $10,000 in cash. Each receives 50% of Epsilon Corporation's stock, which is worth a total of $80,000. As a result of these transfers: None of the above Matthew has no recognized loss, but Gabriella a recognized gain of $10,000. Epsilon Corporation will have a basis in the land of $30,000. Neither Matthew nor Gabriella has any recognized gain or loss. Matthew has a recognized loss of $10,000, and Gabriella has a recognized gain of $15,000.Assume, for purposes of this question only, that Susan acquired 2,000 shares of Hawk Corporation stock for $80,000 on March 31, 2014. On March 1, 2023, she sells 125 shares for $3,750. On March 22, 2023, she purchases 135 shares of Hawk Corporation stock for $4,725. a. What is Susan’s realized gain or loss from the sale on March 1, 2023? b. What is Susan’s recognized gain or loss from the sale on March 1, 2023? c. What is Susan’s basis in the 135 shares purchased on March 22, 2023? d. When does Susan’s holding period begin for the 135 shares
- Anne has 5,500 shares of Sony stock that have an adjusted basis of $35,750. She sold the 5,500 shares of stock for cash of $16,500, and she also received a piece of land as part of the proceeds. The land was valued at $22,500 and had an adjusted basis to the buyer of $13,500. What is Anne's gain or loss on the sale of 5,500 shares of Sony stock?Three years ago, Matthew purchased 250 shares of stock in T Corporation for $14,000. On December 5 of year 4, Matthew sells the 250 shares for $15,500. Part - a a. What is Matthew's capital gain or loss from the sale on December 5 of year 4? Part-bb. Assuming Matthew has no other capital gains or losses, except that on October 15 of year 5, Matthew purchases 250 shares of T Corporation stock for $15, 200. How much gain or loss from the sale on December 5 of year 4 is taxable on Matthew's year 4 tax return? What basis does Matthew take in the stock purchased on October 15 of year 5? ***This question already posted and got correct answer. Don't answer this questionA corporation sells property (basis of $750,000) to its sole shareholder for $450,000, the fair market value of the property. With respect to the sale: MPC Corporation makes a property distribution on 12/31/16 to its sole shareholder, Jon. The property distributed is a house (fair market value of $400,000; basis of $300,000) that is subject to a $150,000 mortgage that Jon assumes. Before considering the consequences of the distribution, MPC’s current E & P before the distribution is $175,000 and its accumulated E & P is $100,000. MPC makes no other distributions during the current year. What is MPCs taxable gain on the distribution of the house? What is MPC’s current E&P after the distribution on 12/31/16? What is Jon’s taxable gain (if any) and what type of gain is it? What is Jon’s basis in the house?