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Ollie: Receives 500 shares of stock Land and Building 30,000 100,000 • Mortgage on land & building (assumed by TOBY, INC.) 60,000 1. Does James have income, gain or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. total gain recognized- $40,000 2. What is James's basis in TOBY, INC. stock? $5,000+Ş40,000= $45,000 3. Does Jenna have income, gain, or loss on the transaction in which she receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. 4. What is Jenna's basis in TOBY, INC. stock? $20,000+ $10,000= $30,000 5. Does Ollie have income, gain, or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. 6. What is Ollie's basis in his TOBY, INC. stock? 30,000-60000+30000-0 7. What basis does TOBY, INC. have in:

Ollie: Receives 500 shares of stock Land and Building 30,000 100,000 • Mortgage on land & building (assumed by TOBY, INC.) 60,000 1. Does James have income, gain or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. total gain recognized- $40,000 2. What is James's basis in TOBY, INC. stock? $5,000+Ş40,000= $45,000 3. Does Jenna have income, gain, or loss on the transaction in which she receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. 4. What is Jenna's basis in TOBY, INC. stock? $20,000+ $10,000= $30,000 5. Does Ollie have income, gain, or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. 6. What is Ollie's basis in his TOBY, INC. stock? 30,000-60000+30000-0 7. What basis does TOBY, INC. have in:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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AutoSave Submissions problem.. Search West, Lauren ff WL File Home Insert Draw Design Layout References Mailings Review View Help A Share P Comments O Find - Calibri (Body) v 11 A^ A Aav AoE AaBbCcDc AaBbCcDc AABBCC Replace Paste BIUV ab x, x A A I Normal 1 No Spac. Heading 1 Dictate Sensitivity Reuse Lexis ® for A Select v Files Microsoft Office ® Clipboard a Font Paragraph Styles Editing Voice Sensitivity |Reuse Files LexisNexis ® The following three individuals decide to form TOBY, INC., a C corporation: James: Receives 500 shares of stock Services performed (developed technology platform) $40,000 Contributed computer and peripheral equipment 5,000 10,000 Jenna: Receives 500 shares of stock Cash 20,000 Office furnishings (desk, chairs, retail fixtures) 10,000 30,000 Ollie: Receives 500 shares of stock Land and Building 30,000 100,000 Mortgage on land & building (assumed by TOBY, INC.) 60,000 1. Does James have income, gain or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. total gain recognized= $40,000 2. What is James's basis in TOBY, INC. stock? $5,000+$40,000= $45,000 3. Does Jenna have income, gain, or loss on the transaction in which she receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. 4. What is Jenna's basis in TOBY, INC. stock? $20,000+ $10,000= $30,000 5. Does Ollie have income, gain , or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. 6. What is Ollie's basis in his TOBY, INC. stock? 30,000-60000+30000=0 7. What basis does TOBY, INC. have in: a. The computer and peripheral equipment $5000 2 of 639 words D Focus 目 Page 2 of 3 + 78% 12:13 PM O Type here to search 51°F Mostly cloudy 10/31/2021
Transcribed Image Text:AutoSave Submissions problem.. Search West, Lauren ff WL File Home Insert Draw Design Layout References Mailings Review View Help A Share P Comments O Find - Calibri (Body) v 11 A^ A Aav AoE AaBbCcDc AaBbCcDc AABBCC Replace Paste BIUV ab x, x A A I Normal 1 No Spac. Heading 1 Dictate Sensitivity Reuse Lexis ® for A Select v Files Microsoft Office ® Clipboard a Font Paragraph Styles Editing Voice Sensitivity |Reuse Files LexisNexis ® The following three individuals decide to form TOBY, INC., a C corporation: James: Receives 500 shares of stock Services performed (developed technology platform) $40,000 Contributed computer and peripheral equipment 5,000 10,000 Jenna: Receives 500 shares of stock Cash 20,000 Office furnishings (desk, chairs, retail fixtures) 10,000 30,000 Ollie: Receives 500 shares of stock Land and Building 30,000 100,000 Mortgage on land & building (assumed by TOBY, INC.) 60,000 1. Does James have income, gain or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. total gain recognized= $40,000 2. What is James's basis in TOBY, INC. stock? $5,000+$40,000= $45,000 3. Does Jenna have income, gain, or loss on the transaction in which she receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. 4. What is Jenna's basis in TOBY, INC. stock? $20,000+ $10,000= $30,000 5. Does Ollie have income, gain , or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. 6. What is Ollie's basis in his TOBY, INC. stock? 30,000-60000+30000=0 7. What basis does TOBY, INC. have in: a. The computer and peripheral equipment $5000 2 of 639 words D Focus 目 Page 2 of 3 + 78% 12:13 PM O Type here to search 51°F Mostly cloudy 10/31/2021
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