Marie and Ramesh form Roundtree Corporation with the transfer of the following. Marie performs personal services for the corporation with a fair market value of $80,000 in exchange for 400 shares of stock. Ramesh contributes an installment note receivable (basis $25,000; fair market value $30,000), land (basis $50,000; fair market value $170,000), and inventory (basis $100,000; fair market value $120,000) in exchange for 1,600 shares. Determine Marie and Ramesh's current income, gain, or loss and calculate the basis that each takes in the Roundtree stock. If an amount is zero, enter "0". 126,000 and $ 0 and $ 318,200 basis in his 1,600 shares of stock. Marie has income of $ of $ 126,000 basis in her 400 shares of stock. Ramesh has income
Marie and Ramesh form Roundtree Corporation with the transfer of the following. Marie performs personal services for the corporation with a fair market value of $80,000 in exchange for 400 shares of stock. Ramesh contributes an installment note receivable (basis $25,000; fair market value $30,000), land (basis $50,000; fair market value $170,000), and inventory (basis $100,000; fair market value $120,000) in exchange for 1,600 shares. Determine Marie and Ramesh's current income, gain, or loss and calculate the basis that each takes in the Roundtree stock. If an amount is zero, enter "0". 126,000 and $ 0 and $ 318,200 basis in his 1,600 shares of stock. Marie has income of $ of $ 126,000 basis in her 400 shares of stock. Ramesh has income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Marie and Ramesh form Roundtree Corporation with the transfer of the following. Marie performs personal services for the corporation with
a fair market value of $80,000 in exchange for 400 shares of stock. Ramesh contributes an installment note receivable (basis $25,000; fair
market value $30,000), land (basis $50,000; fair market value $170,000), and inventory (basis $100,000; fair market value $120,000) in
exchange for 1,600 shares.
Determine Marie and Ramesh's current income, gain, or loss and calculate the basis that each takes in the Roundtree stock.
If an amount is zero, enter "0".
126,000 and $
0 and $ 318,200 basis in his 1,600 shares of stock.
Marie has income of $
of $
126,000 basis in her 400 shares of stock. Ramesh has income
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