Required information [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 bases: Inventory Building Land Total FMV 72,000 540,000 828,000 $1,440,000 Adjusted basis $ Adjusted Basis 36,000 360,000 1,080,000 $1,476,000 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 $1,340,000. The transaction met the requirements to be tax-deferred under $351. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Inventory Assume the corporation assumed a mortgage of $1,540,000 attached to the building and land. Assume the fair market value of the building is now $900,000 and the fair market value of the land is $1,908,000. The fair market value of the stock remains $1,340,000. g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermediate calculations.) Building Land
Required information [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 bases: Inventory Building Land Total FMV 72,000 540,000 828,000 $1,440,000 Adjusted basis $ Adjusted Basis 36,000 360,000 1,080,000 $1,476,000 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 $1,340,000. The transaction met the requirements to be tax-deferred under $351. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Inventory Assume the corporation assumed a mortgage of $1,540,000 attached to the building and land. Assume the fair market value of the building is now $900,000 and the fair market value of the land is $1,908,000. The fair market value of the stock remains $1,340,000. g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermediate calculations.) Building Land
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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Domestic
![Required information
[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 bases:
Inventory
Building
Land
Total
FMV
72,000
540,000
828,000
$1,440,000
Adjusted basis
$
Adjusted
Basis
36,000
360,000
1,080,000
$1,476,000
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 $1,340,000. The transaction met the requirements to be tax-deferred
under $351. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
Inventory
Assume the corporation assumed a mortgage of $1,540,000 attached to the building and land. Assume the fair market value of the
building is now $900,000 and the fair market value of the land is $1,908,000. The fair market value of the stock remains $1,340,000.
g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermediate calculations.)
Building
Land](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa8cfc449-e30d-4ca6-8641-c23bfa6bd4cc%2F402e08e7-1b5c-4c48-8ede-39c9dc6b45e8%2F9pal2id_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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 bases:
Inventory
Building
Land
Total
FMV
72,000
540,000
828,000
$1,440,000
Adjusted basis
$
Adjusted
Basis
36,000
360,000
1,080,000
$1,476,000
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 $1,340,000. The transaction met the requirements to be tax-deferred
under $351. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
Inventory
Assume the corporation assumed a mortgage of $1,540,000 attached to the building and land. Assume the fair market value of the
building is now $900,000 and the fair market value of the land is $1,908,000. The fair market value of the stock remains $1,340,000.
g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermediate calculations.)
Building
Land
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