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 $ 10,000 $ 4,000
3. 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 |
$ 10,000 |
$ 4,000 |
|
Building |
50,000 |
30,000 |
|
Land |
100,000 |
50,000 |
|
Total |
$ 160,000 |
$ 84,000 |
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.)
What is Ramon’s basis in the stock he receives in his corporation?
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