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 tax bases: Inventory Building Land Total FMV $ 92,000 690,000 1,058,000 $ 1,840,000 Adjusted Tax Basis $ 46,000 460,000 1,380,000 $ 1,886,000 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 $1,740,000. Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. g. Suppose the corporation assumed a mortgage of $1,940,000 attached to the building and land. The fair market value of the building is $1,150,000 and the fair market value of the land is $2,438,000. The fair market value of the stock remains $1,740,000. What is the corporation's adjusted tax basis in each of the assets received in the exchange? Note: Do not round intermediate calculations. Inventory Building Land Adjusted basis
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 tax bases: Inventory Building Land Total FMV $ 92,000 690,000 1,058,000 $ 1,840,000 Adjusted Tax Basis $ 46,000 460,000 1,380,000 $ 1,886,000 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 $1,740,000. Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. g. Suppose the corporation assumed a mortgage of $1,940,000 attached to the building and land. The fair market value of the building is $1,150,000 and the fair market value of the land is $2,438,000. The fair market value of the stock remains $1,740,000. What is the corporation's adjusted tax basis in each of the assets received in the exchange? Note: Do not round intermediate calculations. Inventory Building Land Adjusted basis
Chapter20: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 8DQ
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![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 tax bases:
Inventory
Building
Land
Total
FMV
$ 92,000
690,000
1,058,000
$ 1,840,000
Adjusted Tax
Basis
$ 46,000
460,000
1,380,000
$ 1,886,000
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 $1,740,000.
Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
g. Suppose the corporation assumed a mortgage of $1,940,000 attached to the building and land. The fair market value of the building
is $1,150,000 and the fair market value of the land is $2,438,000. The fair market value of the stock remains $1,740,000.
What is the corporation's adjusted tax basis in each of the assets received in the exchange?
Note: Do not round intermediate calculations.
Inventory
Building
Land
Adjusted basis](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0c983315-572f-4e29-9a5b-7b948d4974f2%2Fa51fc702-033f-4ac1-b680-fbfe1bd991c9%2Fzon419k_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 tax bases:
Inventory
Building
Land
Total
FMV
$ 92,000
690,000
1,058,000
$ 1,840,000
Adjusted Tax
Basis
$ 46,000
460,000
1,380,000
$ 1,886,000
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 $1,740,000.
Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
g. Suppose the corporation assumed a mortgage of $1,940,000 attached to the building and land. The fair market value of the building
is $1,150,000 and the fair market value of the land is $2,438,000. The fair market value of the stock remains $1,740,000.
What is the corporation's adjusted tax basis in each of the assets received in the exchange?
Note: Do not round intermediate calculations.
Inventory
Building
Land
Adjusted basis
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