In a qualified 351 transaction, Clara transfer the following assets to Columbia corporation in exchange for 100 % of its stock: transfer property adjusted basis fair market value building 100,000 90,000 land 300,000 800,000 equipment 150,000 100,000 What are Columbia basis in the land, building, and equipment?

In a qualified 351 transaction, Clara transfer the following assets to Columbia corporation in exchange for 100 % of its stock: transfer property adjusted basis fair market value building 100,000 90,000 land 300,000 800,000 equipment 150,000 100,000 What are Columbia basis in the land, building, and equipment?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 15MCQ

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I Required information [The following information applies to the questions displayed below.] 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 88,000 660,000 1,012,000 $1,760,000 $ Adjusted Basis $ 44,000 440,000 1,320,000 $1,804,000 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 $1,660,000. 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.) Assume the corporation assumed a mortgage of $1,860,000 attached to the building and land. Assume the fair market value of the building is now $1,100,000 and the fair…
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[The following information applies to the questions displayed below.]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: FMV Adjusted Basis Inventory $ 68,000 $ 34,000 Building 510,000 340,000 Land 782,000 1,020,000 Total $ 1,360,000 $ 1,394,000 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 $1,260,000. 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.) a. What amount of gain or loss does Zhang realize on the transfer of the property to her corporation? C. What is Zhang’s tax basis in the…
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: FMV Adjusted Basis Inventory $ 60,000 $ 30,000 Building 450,000 300,000 Land 690,000 900,000 Total $ 1,200,000 $ 1,230,000 Assume the corporation assumed a mortgage of $1,300,000 attached to the building and land. Assume the fair market value of the building is now $750,000 and the fair market value of the land is $1,590,000. The fair market value of the stock remains $1,100,000. What is the corporation’s adjusted basis in each of the assets received in the exchange?(Do not round intermediate calculations.)
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 88,000 660,000 1,012,000 $1,760,000 $ Adjusted Basis 44,000 440,000 1,320,000 $1,804,000 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 $1,660,000. 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.)
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Ramon incorporated his 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: FMV Inventory $ Building Land Total $ 14,500 61,000 156,000 231,500 Adjusted Basis $ 5,600 52,000 55,500 $ 113,100 The fair market value of the corporation's stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ramon. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) a. What amount of gain or loss does Ramon realize on the transfer of the property to his corporation? b. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation? c. What is Ramon's basis in the stock he receives in his corporation?
Andre incorporated his sole proprietorship by transferring the following assets and debts to Raiders Corp, in returm for 100 percent of Raider. Corp's stock. The fair market value of Raider Corp. stock received in the exchange equals the FMV or the assets transferred, less the debt assumed by Raider Corp. Adjusted Debt / Mortgage Asset FMV Basis Transferred with Asset Recording Equipment $40,000 $30,000 n/a Building $140,000 $90,000 $50,000 Land $230,000 $280.000 $60.000 Total $410,000 $400,000 $110,000 Question 1: What amount of gain or loss does Andre realize on the exchange? Select | Question 2: What amount of gain or loss does Andre recognize on the exchange? (Select Question 3: What is Andre's basis in the stock he receives in Raider Corp.? Select]
1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date?
Jeff Stein incorporated his 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 value and adjusted bases. FMV Adjusted Basis Inventory $30,000 $45,000 Building 150,000 120,000 Land 180,000 90,000 Total $360,000 $255,000 The fair market value of the corporation’s stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Jeff. The transaction met the requirements to be tax-deferred under §351. a. What amount of gain or loss does Jeff realize on the transfer of the property to his corporation? b. What amount of gain or loss does Jeff recognize on the transfer of the property to her corporation? c. What is Jeff’s basis in the stock he receives in his corporation? d. What is the corporation’s adjusted basis in each of…