Problem 19-40 Part g (Algo) g. Suppose the corporation assumed a mortgage of $900,000 attached to the building and land. The fair market value of the building is $500,000 and the fair market value of the land is $1,060,000. The fair market value of the stock remains $700,000. What is the corporation's adjusted tax basis in each of the assets received in the exchange? Note: Do not round intermediate calculations. Adjusted basis Inventory Building Land
Problem 19-40 Part g (Algo) g. Suppose the corporation assumed a mortgage of $900,000 attached to the building and land. The fair market value of the building is $500,000 and the fair market value of the land is $1,060,000. The fair market value of the stock remains $700,000. What is the corporation's adjusted tax basis in each of the assets received in the exchange? Note: Do not round intermediate calculations. Adjusted basis Inventory Building Land
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 19-40 (LO 19-2) (Algo)
[The following information applies to the questions displayed below.]
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for
100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values
and adjusted tax bases:
Inventory
Building
Land
Total
FMV
$ 40,000
300,000
460,000
$ 800,000
The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the
corporation's stock received in the exchange was $700,000.
Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
Problem 19-40 part g (Algo)
g. Suppose the corporation assumed a mortgage of $900,000 attached to the building and land. The fair market value of the building
is $500,000 and the fair market value of the land is $1,060,000. The fair market value of the stock remains $700,000.
Adjusted basis
Adjusted Tax
Basis
$ 20,000
200,000
600,000
$ 820,000
What is the corporation's adjusted tax basis in each of the assets received in the exchange?
Note: Do not round intermediate calculations.
Inventory
Building
Land](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1ac89015-4b1e-41e5-8d85-790f25755063%2F216d52c1-6792-4886-a9bf-ec40be7423e3%2Fco3vrm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 19-40 (LO 19-2) (Algo)
[The following information applies to the questions displayed below.]
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for
100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values
and adjusted tax bases:
Inventory
Building
Land
Total
FMV
$ 40,000
300,000
460,000
$ 800,000
The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the
corporation's stock received in the exchange was $700,000.
Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
Problem 19-40 part g (Algo)
g. Suppose the corporation assumed a mortgage of $900,000 attached to the building and land. The fair market value of the building
is $500,000 and the fair market value of the land is $1,060,000. The fair market value of the stock remains $700,000.
Adjusted basis
Adjusted Tax
Basis
$ 20,000
200,000
600,000
$ 820,000
What is the corporation's adjusted tax basis in each of the assets received in the exchange?
Note: Do not round intermediate calculations.
Inventory
Building
Land
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