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$ 215,250$ 9,20047,000InventoryBuildingLand69,000$ 125,200TotalThe 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.)c. What is Ramon's basis in the stock he receives in his corporation?Tax basis

Total Adjusted tax basis = $125,200

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 $ 9,200 47,000 69,000 FMV $ 21,500 54,750 139,000 $ 215,250 Inventory Building Land $ 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.)

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 $ 9,200 47,000 69,000 FMV $ 21,500 54,750 139,000 $ 215,250 Inventory Building Land $ 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Subject : Accounting
Antoine transfers property with a tax basis of $570 and a fair market value of $615 to a corporation in exchange for stock with a fair market value of $598 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $17 on the property transferred. What is Antoine's tax basis in the stock received in the exchange? Multiple Choice $615 $598 $570 $553
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 Adjusted Tax Basis $ 20,000 200,000 600,000 $ 800,000 $ 820,000 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…
A shareholder sells public securities to a corporation, and files a section 85 election to have a transfer/sale price of $60,000. The fair market value (FMV) and adjusted cost base (ACB) of the securities are $220,000 and $60,000 respectively. As consideration for the transfer, the corporation issues a $50,000 note, preference shares worth $150,000 and common shares worth $20,000. What are the tax costs of the various assets to the shareholder? The note - $50,000, the preference shares - $nil, and the common shares $10,000. The note - $50,000, the preference shares - $132,353 ($150,000/$170,000 total share value issued), and the common shares $37,647 ($2,000/$170,000 total share value issued). The note - $60,000, the preference shares - $150,000, and the common shares $10,000. The note - $50,000, the preference shares - $10,000, and the common shares $nil.
Macedonia Corporation distributes Land (Adjusted Basis of $120,000 and Fair Market Value of $200,000) as a Property Dividend to its shareholders. The Land is subject to a liability of $250,000. As a result of this distribution, Macedonia Corporation must (has) Recognized Gain of: $130,000. $ 50,000. $ 80,000. $ -0-.
Gg.115.
On January 7, 2022, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under § 351. The shareholder's basis, the fair market value, and the built-in gain (loss) of each property are: Shareholder's Fair Market Built in Gain Basis Value or (Loss) Property 1 $471,800 $566,160 $94,360 Property 2 $802,060 $613,340 ($188,720) Net built-in loss ($94,360) Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 45% shareholder when the property is worth $518,980. a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. Martin's basis is Property 1 is a Martin's basis in Property 2 is a basis of $ basis of $ b. Compute Martin's realized and recognized loss on the liquidating distribution of Property 2. Martin has a realized loss of $ and a recognized loss of $
Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $235,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock: FMV Adjusted Tax Basis Building $ 88, 125 $ 23,500 Land 205, 625 94, 000 Total $ 293,750 $ 117,500 To equalize the exchange, Wiley Corporation paid Hermione $58, 750 in addition to her stock. d. What is Hermione's tax basis in the stock received in return for the contribution of property to the corporation? e. What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione? f. Assume Hermione's adjusted tax basis in the land was $235,000. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize? G. Assume Hermione's adjusted tax basis in the land was $235,000. What adjusted tax basis…
Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $300,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock: FMV Building $112,500 Land 262,500 Total $375,000 Adjusted Tax Basis $30,000 120,000 $150,000 To equalize the exchange, Wiley Corporation paid Hermione $75,000 in addition to her stock. i. Assume Hermione's adjusted tax basis in the land was $375,000. What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione seperately?
What is the stock basis for Harold in the following: Harold transfers the following to a newly formed corporation: Land (basis of $50,000 and FMV of $100,000) Building (basis of $50,000 and FMV of $400,000) Accounts payable of $10,000 (for business supplies) Notes Payable 1 for building improvements of $185,000 Oa Zero (original basis plus gain recognized less liabilities transferred) Ob s05,000 the gain recognized Oc $5,000 (the gain recognized less original basin) Od $100,000 ($50 - 150) O. 1S05,000) (8100,000 basis less 8195,000 gain)
hello please provide answer
Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $ 215,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock: FMV Adjusted Tax Basis Building $ 80,625 $ 21, 500 Land 188, 125 86,000 Total $ 268, 750 $ 107,500 To equalize the exchange, Wiley Corporation paid Hermione $53, 750 in addition to her stock. e. What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione?