Mr. zj owns a sole proprietorship. the business assets have a $294,000 aggregate adjusted basis. according to an independent appraisal, the business is worth $431,000. mr. zj transfers his business to zjl corporation in exchange for 1,000 shares of zjl stock. in each of the following cases: compute mr. zj’s recognized gain on the exchange of assets for stock. assume immediately after the exchange, zjl has 20,000 shares of outstanding stock, of which mr. zj owns 1,000 shares. compute mr. zj’s recognized gain on the exchange of assets for stock. assume immediately after the exchange, zjl has 1,500 shares of outstanding stock, of which mr. zj owns 1,000 shares. compute mr. zj’s recognized gain on the exchange of assets for stock. assume immediately after the exchange, zjl has 1,200 shares of outstanding stock, of which mr. zj owns 1,000 shares.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.

it established new limitations on use and disclosure for marketing purposes, prohibited selling medical information, expanded individuals’ rights to accessing their own information, and to obtain restrictions from certain disclosures of protected heath information to health plans.