Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to Swift Corporation

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Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to Swift for 90% of the stock. The property is subject to a liability of $60,000, which Swift assumes.
a. What is the basis of the Swift stock to Adam?
b. What is the basis of the property to Swift
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

ISBN: 1389

41st Edition

Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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Question Posted: May 25, 2015 07:27 AM

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Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to Swift Corporation

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a Adam recognizes a gain of 10000 on the transaction under 357c 60000 liability 50000 basi...View the full answer

South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

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