Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $226,400 and fair market value of $339,600). Simon invests $271,680 of cash. They each receive 100 shares in Ion Corporation, worth $271,680, but Yvonne also receives $67,920 in cash from Ion. Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock. Ion Corporation has a basis of $fill in the blank 1 __________? in the equipment. Yvonne has a basis of $fill in the blank 2_________? for her stock and Simon has a basis of $fill in the blank 3_________? for his stock
Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $226,400 and fair market value of $339,600). Simon invests $271,680 of cash. They each receive 100 shares in Ion Corporation, worth $271,680, but Yvonne also receives $67,920 in cash from Ion. Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock. Ion Corporation has a basis of $fill in the blank 1 __________? in the equipment. Yvonne has a basis of $fill in the blank 2_________? for her stock and Simon has a basis of $fill in the blank 3_________? for his stock
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $226,400 and fair market value of $339,600). Simon invests $271,680 of cash. They each receive 100 shares in Ion Corporation, worth $271,680, but Yvonne also receives $67,920 in cash from Ion.
Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock.
Ion Corporation has a basis of $fill in the blank 1 __________? in the equipment. Yvonne has a basis of $fill in the blank 2_________? for her stock and Simon has a basis of $fill in the blank 3_________? for his stock.
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