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?
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?
Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations
Section: Chapter Questions
Problem 14CE
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Transcribed Image Text: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?
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