! Required information [The following information applies to the questions displayed below.] Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $310,000 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: Building Land Total FMV $ 116,250 271,250 $ 387,500 Adjusted Tax Basis $ 31,000 124,000 $ 155,000 To equalize the exchange, Wiley Corporation paid Hermione $77,500 in addition to her stock. e. What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione? Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. Land Adjusted tax basis Building
! Required information [The following information applies to the questions displayed below.] Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $310,000 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: Building Land Total FMV $ 116,250 271,250 $ 387,500 Adjusted Tax Basis $ 31,000 124,000 $ 155,000 To equalize the exchange, Wiley Corporation paid Hermione $77,500 in addition to her stock. e. What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione? Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. Land Adjusted tax basis Building
Chapter18: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 30P
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Required information
[The following information applies to the questions displayed below.]
Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $310,000 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:
Building
Land
Total
FMV
$ 116,250
271,250
$ 387,500
Adjusted Tax
Basis
$ 31,000
124,000
$ 155,000
To equalize the exchange, Wiley Corporation paid Hermione $77,500 in addition to her stock.
e. What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione?
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.
Land
Adjusted tax basis
Building](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F59cc5fbb-05ac-4655-9063-94c27856bf76%2F1f3076bc-0bfb-4645-aa6b-e472f554b974%2Fy0y0wl8_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $310,000 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:
Building
Land
Total
FMV
$ 116,250
271,250
$ 387,500
Adjusted Tax
Basis
$ 31,000
124,000
$ 155,000
To equalize the exchange, Wiley Corporation paid Hermione $77,500 in addition to her stock.
e. What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione?
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.
Land
Adjusted tax basis
Building
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