See Attached. 12 Problem 4-42 (LO. 1, 3)Alice and Jane form Osprey Corporation. Alice transfers property (basis of $25,000 and value of $200,000) for 50 shares in OspreyCorporation. Jane transfers property (basis of $50,000 and value of $165,000) and agrees to provide accounting services in organizing thecorporation; in return, Jane receives 50 shares in Osprey. The value of Jane's services is $35,000.a. What gain or income does Jane recognize?Jane hasof $b. What is Osprey Corporation's basis in the property transferred by Jane? How does Osprey treat the value of the services that Janerenders?Osprey Corporation has a basis of $in the property it acquires from Jane, and it mustthe amountpaid for services asexpense for the services Jane renders.

A There is loss on sale of property Loss=200000-165000=35000 Loss =$35000 income from services…

nd Jane form Osprey Corporation. Alice transfers property (basis of $25,000 and value of $200,000) for 50 shares ation. Jane transfers property (basis of $50,000 and value of $165,000) and agrees to provide accounting service: ation; in return, Jane receives 50 shares in Osprey. The value of Jane's services is $35,000. at gain or income does Jane recognize? of $ as at is Osprey Corporation's basis in the property transferred by Jane? How does Osprey treat the value of the serv s? - Corporation has a basis of $ or services as in the property it acquires from Jane, and it must expense for the services Jane renders.

nd Jane form Osprey Corporation. Alice transfers property (basis of $25,000 and value of $200,000) for 50 shares ation. Jane transfers property (basis of $50,000 and value of $165,000) and agrees to provide accounting service: ation; in return, Jane receives 50 shares in Osprey. The value of Jane's services is $35,000. at gain or income does Jane recognize? of $ as at is Osprey Corporation's basis in the property transferred by Jane? How does Osprey treat the value of the serv s? - Corporation has a basis of $ or services as in the property it acquires from Jane, and it must expense for the services Jane renders.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 36P

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See attached. #4
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