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
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 54P
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![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
Basis
FMV
$ 21,500
54,750
139,000
$ 9,200
47,000
69,000
$ 125,200
Inventory
Building
Land
$ 215,250
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.)
b. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation?
Gain or loss recognized](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82a2c61e-b075-443a-8c26-c8eda0f652c8%2F0be8fcce-e8bf-4935-842d-718c986b6286%2Fmni8si_processed.png&w=3840&q=75)
Transcribed Image Text: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
Basis
FMV
$ 21,500
54,750
139,000
$ 9,200
47,000
69,000
$ 125,200
Inventory
Building
Land
$ 215,250
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.)
b. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation?
Gain or loss recognized
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