Tia Kline, a resident of Canada, is the sole shareholder of KI Inc. She plans to transfer four assets, which she owns, to KI Inc. in exchange for cash and preferred shares of KI Inc. She wishes to receive the maximum amount in cash that she can receive and still defer the recognition of income for tax purposes on the transfer of the assets. Tia and KI Inc. will jointly make a Section 85 election for each of the assets. The following is the details of the assets: 111 FMV ACB UCC Land Building Equipment 115,000 10,350 46,000 $ 401,350 $ 230,000 $ 46,000 $ 80,500 34,500 20,000 $ 181,000 $ 84,275 57,500 9,200 17,575 Goodwill
Tia Kline, a resident of Canada, is the sole shareholder of KI Inc. She plans to transfer four assets, which she owns, to KI Inc. in exchange for cash and preferred shares of KI Inc. She wishes to receive the maximum amount in cash that she can receive and still defer the recognition of income for tax purposes on the transfer of the assets. Tia and KI Inc. will jointly make a Section 85 election for each of the assets. The following is the details of the assets: 111 FMV ACB UCC Land Building Equipment 115,000 10,350 46,000 $ 401,350 $ 230,000 $ 46,000 $ 80,500 34,500 20,000 $ 181,000 $ 84,275 57,500 9,200 17,575 Goodwill
Chapter22: S Corporations
Section: Chapter Questions
Problem 30P
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT