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 $ 68,000 510,000 782,000 Adjusted Tax Basis $ 34,000 340,000 1,020,000 $ 1,360,000 $ 1,394,000 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 $1,260,000. 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 $1,460,000 attached to the building and land. The fair market value of the building is $850,000 and the fair market value of the land is $1,802,000. The fair market value of the stock remains $1,260,000. 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 $ 35,650
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 $ 68,000 510,000 782,000 Adjusted Tax Basis $ 34,000 340,000 1,020,000 $ 1,360,000 $ 1,394,000 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 $1,260,000. 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 $1,460,000 attached to the building and land. The fair market value of the building is $850,000 and the fair market value of the land is $1,802,000. The fair market value of the stock remains $1,260,000. 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 $ 35,650
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 30CE
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