Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in...
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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 tax bases: Таx FMV Basis $ 30,750 $ 12,500 Inventory Building 78,000 154,000 $ 262,750 $123,500 46,500 64,500 Land Total 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. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What amount of gain or loss does Ramon realize on the transfer of the property to his corporation? Gain or loss realized b. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation? Gain or loss recognized c. What is Ramon's basis in the stock he receives in his corporation? Basis in the stock 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 tax bases: Таx FMV Basis $ 30,750 $ 12,500 Inventory Building 78,000 154,000 $ 262,750 $123,500 46,500 64,500 Land Total 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. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What amount of gain or loss does Ramon realize on the transfer of the property to his corporation? Gain or loss realized b. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation? Gain or loss recognized c. What is Ramon's basis in the stock he receives in his corporation? Basis in the stock
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Related Book For
Essentials of Federal Taxation 2019
ISBN: 9781260190045
10th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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