Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $362,200 and fair market value of $543,300). Simon invests $434,640 of cash. They each receive 100 shares in Ion Corporation, worth $434,640, but Yvonne also receives $108,660 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 $ in the equipment. Yvonne has a basis of $ for her stock and Simon has a basis of $ for his stock.

Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $362,200 and fair market value of $543,300). Simon invests $434,640 of cash. They each receive 100 shares in Ion Corporation, worth $434,640, but Yvonne also receives $108,660 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 $ in the equipment. Yvonne has a basis of $ for her stock and Simon has a basis of $ for his stock.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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