Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted bases: Inventory Building Land Total FMV 76,000 570,000 874,000 $1,520,000 $ Adjusted basis Adjusted Basis $ 38,000 380,000 1,140,000 $1,558,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $1,420,000. The transaction met the requirements to be tax-deferred under $351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Inventory Assume the corporation assumed a mortgage of $1,620,000 attached to the building and land. Assume the fair market value of the building is now $950,000 and the fair market value of the land is $2,014,000. The fair market value of the stock remains $1,420,000. 9. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermediate calculations.) Building Land
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted bases: Inventory Building Land Total FMV 76,000 570,000 874,000 $1,520,000 $ Adjusted basis Adjusted Basis $ 38,000 380,000 1,140,000 $1,558,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $1,420,000. The transaction met the requirements to be tax-deferred under $351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Inventory Assume the corporation assumed a mortgage of $1,620,000 attached to the building and land. Assume the fair market value of the building is now $950,000 and the fair market value of the land is $2,014,000. The fair market value of the stock remains $1,420,000. 9. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermediate calculations.) Building Land
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 32P
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Question
A7
Transcribed Image Text:Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for
100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values
and adjusted bases:
Inventory
Building
Land
Total
FMV
$ 76,000
570,000
874,000
$1,520,000
Adjusted basis
Adjusted
Basis
$
38,000
380,000
1,140,000
$1,558,000
The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the
corporation's stock received in the exchange was $1,420,000. The transaction met the requirements to be tax-deferred
under $351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
Inventory
Assume the corporation assumed a mortgage of $1,620,000 attached to the building and land. Assume the fair market value of the
building is now $950,000 and the fair market value of the land is $2,014,000. The fair market value of the stock remains $1,420,000.
g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermediate calculations.)
Building
Land
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