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: FMV Adjusted Tax Basis Inventory $ 17,000 $ 6,300 Building 72, 250 48,000 Land 155, 000 90,500 Total $ 244,250 $ 144,800 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. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. c. What is Ramon's basis in the stock received in the new corporation?
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: FMV Adjusted Tax Basis Inventory $ 17,000 $ 6,300 Building 72, 250 48,000 Land 155, 000 90,500 Total $ 244,250 $ 144,800 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. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. c. What is Ramon's basis in the stock received in the new corporation?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 32P
Related questions
Question
![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: FMV Adjusted Tax Basis
Inventory $ 17,000 $ 6,300 Building 72, 250 48,000 Land 155, 000 90,500 Total $ 244,250 $
144,800 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. Note: Leave no answer blank.
Enter zero if applicable. Negative amount should be indicated by a minus sign. c. What is Ramon's
basis in the stock received in the new corporation?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F20ba6838-c983-49fe-8f91-29122ea02387%2F0ca48b3a-0a72-459a-9b4e-9a89d45eec5c%2Frkprfg_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: FMV Adjusted Tax Basis
Inventory $ 17,000 $ 6,300 Building 72, 250 48,000 Land 155, 000 90,500 Total $ 244,250 $
144,800 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. Note: Leave no answer blank.
Enter zero if applicable. Negative amount should be indicated by a minus sign. c. What is Ramon's
basis in the stock received in the new corporation?
AI-Generated Solution
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you