Business
Business, 13.03.2020 22:20, PolinaZagorodniy123

Ivan 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 Adjusted Basis
Inventory $19,900 $37,000
Building 82,500 60,500
Land 82,750 50,250
Total $185,150 $147,750
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 Ivan. The transaction met the requirements to be tax-deferred under 351. (Any answer representing a loss should be entered as a negative number. Leave no answer blank. Enter zero if applicable.)

a. What amount of gain or loss does Ivan realize on the transfer of the property to his corporation?

b. What amount of gain or loss does Ivan recognize on the transfer of the property to his corporation?

c. What is Ivan's basis in the stock he receives in his corporation?

d. What is the corporation's adjusted basis in each of the assets received in the exchange?

e. Would the stock held by Ivan qualify as 1244 stock?

answer
Answers: 2

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