Business, 28.11.2019 02:31, netflixacc0107
In forming parts inc. as a corporation, candice transferred inventory to parts inc. in exchange for 30 percent of the corporation's stock (130 shares valued at $442,000). the inventory's fair market value was $474,000 and its adjusted tax basis to candice was $412,500. the inventory was subject to a $32,000 liability that parts inc. assumed on the transfer. candice borrowed the $32,000 from the bank (using the inventory as collateral) shortly before transferring the inventory to parts inc. and she used the loan proceeds to pay for a family vacation to europe. (negative amounts should be indicated by a minus sign. leave no answer blank. enter zero if applicable.)a. assuming the transfer qualifies under §351 and that the liability has a tax avoidance purpose, what gain or loss will candice recognize on the transfer?
b. assuming the original facts, what is candice's basis in the stock she received in the exchange?
c. suppose the liability does not have a tax avoidance purpose, what gain will candice recognize on the transfer?
d. assuming the facts in part c, what is candice's basis in the stock she received in the exchange?
Answers: 2
Other questions on the subject: Business
Business, 21.06.2019 14:30, jessebeck0805
At which level will a manager use analytics to make decisions? operational level managerial level strategic level all of the above
Answers: 3
Business, 22.06.2019 19:00, karmaxnagisa20
By 2020, automobile market analysts expect that the demand for electric autos will increase as buyers become more familiar with the technology. however, the costs of producing electric autos may increase because of higher costs for inputs (e. g., rare earth elements), or they may decrease as the manufacturers learn better assembly methods (i. e., learning by doing). what is the expected impact of these changes on the equilibrium price and quantity for electric autos?
Answers: 1
Business, 22.06.2019 21:30, lee1677
Which of the following results in an increase in the standard of living? a. an increase in unemployment pushes down the cost of production. b. wages go up to correct for the inflation of prices. c. income increases, enabling consumers to buy more goods and services. d. rising production costs drive up the price of goods and services.
Answers: 1
Do you know the correct answer?
In forming parts inc. as a corporation, candice transferred inventory to parts inc. in exchange for...
Questions in other subjects:
Mathematics, 08.10.2020 14:01
Mathematics, 08.10.2020 14:01
