Seth, Pete, Cara, and Jen form SPCJ Corp. (a controlled corporation) by contributing the following consideration: • Seth contributes furniture & fixtures (FMV = $96,000; Seth's basis = $30,000) • Pete contributes equipment (FMV = $99,000; Pete's basis = $45,000) • Cara contributes land (FMV = $90,000; Cara's basis = $15,000) • Jen contributes cash (FMV = $30,000) In exchange, Seth, Pete, Cara, and Jen receive the following: • Seth receives 30 shares of SPCJ Corp. plus $6,000 cash. • Pete receives 30 shares of SPCJ Corp. plus $9,000 cash. • Cara receives 30 shares of SPCJ Corp. • Jen receives 10 shares of SPCJ Corp. Each share of SPCJ Corp. is worth $3,000. What is Seth's basis in his shares of SPCJ Corp.?
Seth, Pete, Cara, and Jen form SPCJ Corp. (a controlled corporation) by contributing the following consideration: • Seth contributes furniture & fixtures (FMV = $96,000; Seth's basis = $30,000) • Pete contributes equipment (FMV = $99,000; Pete's basis = $45,000) • Cara contributes land (FMV = $90,000; Cara's basis = $15,000) • Jen contributes cash (FMV = $30,000) In exchange, Seth, Pete, Cara, and Jen receive the following: • Seth receives 30 shares of SPCJ Corp. plus $6,000 cash. • Pete receives 30 shares of SPCJ Corp. plus $9,000 cash. • Cara receives 30 shares of SPCJ Corp. • Jen receives 10 shares of SPCJ Corp. Each share of SPCJ Corp. is worth $3,000. What is Seth's basis in his shares of SPCJ Corp.?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![What is SPCJ Corp.'s basis in the furniture & fixtures?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb4425dd8-bb5b-41e7-a933-1115e10b29a9%2Fc31e0c4e-8052-4f8b-9409-220672286e00%2Fc374f2_processed.png&w=3840&q=75)
Transcribed Image Text:What is SPCJ Corp.'s basis in the furniture & fixtures?
![Seth, Pete, Cara, and Jen form SPCJ Corp. (a controlled corporation) by contributing the following
consideration:
• Seth contributes furniture & fixtures (FMV = $96,000; Seth's basis = $30,000)
• Pete contributes equipment (FMV = $99,000; Pete's basis = $45,000)
• Cara contributes land (FMV = $90,000; Cara's basis = $15,000)
• Jen contributes cash (FMV = $30,000)
In exchange, Seth, Pete, Cara, and Jen receive the following:
• Seth receives 30 shares of SPCJ Corp. plus $6,000 cash.
Pete receives 30 shares of SPCJ Corp. plus $9,000 cash.
• Cara receives 30 shares of SPCJ Corp.
• Jen receives 10 shares of SPCJ Corp.
Each share of SPCJ Corp. is worth $3,000.
What is Seth's basis in his shares of SPCJ Corp.?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb4425dd8-bb5b-41e7-a933-1115e10b29a9%2Fc31e0c4e-8052-4f8b-9409-220672286e00%2Fhap5j33_processed.png&w=3840&q=75)
Transcribed Image Text:Seth, Pete, Cara, and Jen form SPCJ Corp. (a controlled corporation) by contributing the following
consideration:
• Seth contributes furniture & fixtures (FMV = $96,000; Seth's basis = $30,000)
• Pete contributes equipment (FMV = $99,000; Pete's basis = $45,000)
• Cara contributes land (FMV = $90,000; Cara's basis = $15,000)
• Jen contributes cash (FMV = $30,000)
In exchange, Seth, Pete, Cara, and Jen receive the following:
• Seth receives 30 shares of SPCJ Corp. plus $6,000 cash.
Pete receives 30 shares of SPCJ Corp. plus $9,000 cash.
• Cara receives 30 shares of SPCJ Corp.
• Jen receives 10 shares of SPCJ Corp.
Each share of SPCJ Corp. is worth $3,000.
What is Seth's basis in his shares of SPCJ Corp.?
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