Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $244,600 and fair market value of $366,900). Simon invests $293,520 of cash. They each receive 100 shares in Ion Corporation, worth $293,520, but Yvonne also receives $73,380 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 $244,600 and fair market value of $366,900). Simon invests $293,520 of cash. They each receive 100 shares in Ion Corporation, worth $293,520, but Yvonne also receives $73,380 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 $244,600 and fair market value of $366,900). Simon invests $293,520 of cash. They each receive 100 shares in Ion Corporation, worth $293,520, but Yvonne also receives $73,380 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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