Can you please give me true answer this financial accounting question? Mason transfers real estate with an adjusted basis of $520,000 and a fair market value of$715,000 to a newly formed corporation in exchange for 100% of the stock. The corporationassumes liability for the transferred real estate in the amount of $590,000.Determine Mason's recognized gain on the transfer and the basis for his stock.

Step 1: Define Recognized Gain and Stock BasisRecognized Gain refers to the portion of realized gain…

Answered: Mason 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

See similar textbooks

Similar questions

Diego transfers real estate with an adjusted basis of... Please answer the financial accounting question
Please help solution
Need help with this question
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?
Pat Middleton owns a non-depreciable capital asset that originally cost $20,000 and is now worth $80,000. Pat transfers the asset to a corporation, receiving as payment debt of $60,000 and preferred shares with a value of $20,000. Pat and the corporation will elect under Section 85 to avoid paying tax on the transfer. Determine the appropriate transfer price under Section 85. Determine the cost of the asset for the corporation, and the ACB and PUC for the preferred shares received as consideration.
Bridget transferred a piece of land she held personally to her wholly owned corporation using the provisions of ITA 85. The land had an adjusted cost base of $150,000 and a fair market value of $250,000 at the time of transfer. The property was mortgaged for $50,000. As consideration for the transfer, Bridget received cash of $200,000 and preferred shares with a legal stated capital of $10,000. The corporation assumed the mortgage. Which one of the following is the elected transfer price (first) and the adjusted cost base of the preferred shares (second)? a. $150,000 and Nil b. $250,000 and $240,000 c. $250,000 and Nil d. $260,000 and $50,000 Clear my choice
I want to correct answer general accounting question
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?$
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

Recommended textbooks for you

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

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

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

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

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

SEE MORE TEXTBOOKS