late basis to X corporation for Inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
P13.
Transcribed Image Text:Mark and Gill form X corporation with the following consideration:
From Mark
Cash
Inventory
From Gill
Services
Consideration Transferred
Basis to FMV
Transferor
80,000
80,000
160,000 320,000
0
20,000
Number of Shares
Received
40
2
Calculate Realized and recognized gain/loss, basis to each shareholder.
Also calculate basis to X corporation for Inventory
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