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CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 43P

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Kay owns XYZ Corporation stock with a basis of
$20,000. She exchanges this for $24,000 of ABC
stock and $8,000 of ABC securities as part of a
tax-free reorganization. What is Kay's realized
gain?

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Mr. X acquires 200 shares of a company on cum-right basis for ? 60,000. He subsequently receives an offer of right to acquire fresh shares in the company in the proportion of 1:1 at ? 105 each. He does not subscribe but sells all the rights for 7 15,000. The market value of the shares after their becoming ex-rights has also gone down to 7 50,000. What should be the accounting treatment in this case?
Brett and Illain formed a new Corporation by transferring the following assets in exchange for stock:▪ Brett transferred: Property subject to a 70,000 mortgage; FMV $1,000000, Basis 500,000. In exchange, she received 200 shares of Stock and relief of the mortgage liability. ▪ Illain transferred: Inventory with a Basis of 15,000 and FMV 150,000. Required:a. What is Brett’s basis in the stock she received b. What is Brett’s recognized gain/loss
In 2021, Ruth transfers the following property for an 80% interest in RGB corporation (1,000 shares): Land with a FMV of $100,000 and an adjusted basis of $20,000. The land had a $40,000 mortgage which was assumed by the corporation. What is the basis of Ruth’s stock in RBG Corporation?
In 2021, Ruth transfers the following property for an 80% interest in RGB corporation (1,000 shares): Land with a FMV of $100,000 and an adjusted basis of $20,000. The land had a $40,000 mortgage which was assumed by the corporation. What basis does RBG Corp have in the land?
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
Moustapha transfers a capital asset with a $20,000 adjusted basis to X Corp in a Section 351 transaction. In exchange, Moustapha receives 100 shares of Class A Common Stock with a FMV of $10,000 and 10O0 shares of Class B Common Stock with a FMV of $30,000. What is Moustapha's total basis in the Class B Common Stock?
Missy owns all 100 shares of Sand Corporation stock having a $1.15 million FMV. Her basis in the stock is $450,000. Sand'sE&P balance is $700,000. Peter would like to purchase the stock but wants only the corporation's non-cash assets valued at $850,000. Peter is willing to pay $850,000 for these assets. How would your answer to Part a change (if at all) if Sand first redeems 25 shares of Missy 's stock for $300,000 and then Peter purchases the remaining 75 shares from Missy for $850,000? Missy will recognize of on her sale of 75 sharos of Sand Corporation stock to Peter. She will recognize an additional of Jon the redemption of her remaining shares by Sand.

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