Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for100 percent of the corporation's stock. The property transferred to the corporation had the following fair market valuesand adjusted tax bases:Adjusted TaxBasisFMV$ 21,50054,750139,000$ 9,20047,00069,000$ 125,200InventoryBuildingLand$ 215,250TotalThe fair market value of the corporation's stock received in the exchange equaled the fair market value of the assetstransferred to the corporation by Ramon. (Leave no answer blank. Enter zero if applicable. Negative amount should beindicated by a minus sign.)b. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation?Gain or loss recognized

Section 351 states that if the property is transferred to a corporation solely in exchange for stock…

Ramon incorporated his 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: Adjusted Tax FMV Basis Inventory Building $ 21,500 54,750 139,000 $ 9,200 47,000 69,000 Land $ 215,250 $ 125,200 Total The fair market value of the corporation's stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ramon. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) o. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation? Gain or loss recognized

Ramon incorporated his 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: Adjusted Tax FMV Basis Inventory Building $ 21,500 54,750 139,000 $ 9,200 47,000 69,000 Land $ 215,250 $ 125,200 Total The fair market value of the corporation's stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ramon. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) o. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation? Gain or loss recognized

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 54P

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