You have been hired as Lucky Baskets Corporation's accountant. Aiming to create a better shopping cart, it was founded last year by Lucian, Ocean, Yannis, and Clarke, with the following consideration: Who From Ocean Inventory From Lucian-Equipment of depreciation (net of $30,000 depreciation taken in prior years) From Clarke Proprietary process From Yannis Cash Basis to Transfer $30,000 45,000 15,000 30,000 Fair Market Value $96,000 99,000 90,000 30,000 Number of Shares Issued 30; plus $6,000 in cash 30; plus $9,000 in cash 30 10 Assume that the value of each share of Lucky Baskets stock is $3,000. The founders ask you to calculate the following values based on §351 rules.
You have been hired as Lucky Baskets Corporation's accountant. Aiming to create a better shopping cart, it was founded last year by Lucian, Ocean, Yannis, and Clarke, with the following consideration: Who From Ocean Inventory From Lucian-Equipment of depreciation (net of $30,000 depreciation taken in prior years) From Clarke Proprietary process From Yannis Cash Basis to Transfer $30,000 45,000 15,000 30,000 Fair Market Value $96,000 99,000 90,000 30,000 Number of Shares Issued 30; plus $6,000 in cash 30; plus $9,000 in cash 30 10 Assume that the value of each share of Lucky Baskets stock is $3,000. The founders ask you to calculate the following values based on §351 rules.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![You have been hired as Lucky Baskets Corporation's accountant. Aiming to create a better shopping cart, it was founded last
year by Lucian, Ocean, Yannis, and Clarke, with the following consideration:
Who
From Ocean Inventory
From Lucian-Equipment of depreciation (net of $30,000
depreciation taken in prior years)
From Clarke-Proprietary process
From Yannis-Cash
Question 1
Basis to
Transfer
Ocean's realized gain or loss
and recognized gain or loss
$30,000
45,000
15,000
30,000
Fair Market
Value
$96,000
99,000
90,000
30,000
Number of Shares
Issued
30; plus $6,000 in
cash
30; plus $9,000 in
cash
30
Assume that the value of each share of Lucky Baskets stock is $3,000. The founders ask you to calculate the
following values based on §351 rules.
10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F238d2fba-7960-4fa7-8d03-e79e15caac83%2F0ecdb82f-dfbd-40cb-b7e9-2fd5d8338486%2Fg0otdb7_processed.png&w=3840&q=75)
Transcribed Image Text:You have been hired as Lucky Baskets Corporation's accountant. Aiming to create a better shopping cart, it was founded last
year by Lucian, Ocean, Yannis, and Clarke, with the following consideration:
Who
From Ocean Inventory
From Lucian-Equipment of depreciation (net of $30,000
depreciation taken in prior years)
From Clarke-Proprietary process
From Yannis-Cash
Question 1
Basis to
Transfer
Ocean's realized gain or loss
and recognized gain or loss
$30,000
45,000
15,000
30,000
Fair Market
Value
$96,000
99,000
90,000
30,000
Number of Shares
Issued
30; plus $6,000 in
cash
30; plus $9,000 in
cash
30
Assume that the value of each share of Lucky Baskets stock is $3,000. The founders ask you to calculate the
following values based on §351 rules.
10
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