Question
1. Bonnie and Clyde formed FastGetaway Corporation to engage in a limousine charter service business. Bonnie contributed $50,000 in cash. Clyde contributed a Mercedes-Benz limousine
1. Bonnie and Clyde formed FastGetaway Corporation to engage in a limousine charter service business. Bonnie contributed $50,000 in cash. Clyde contributed a Mercedes-Benz limousine with a fair market value of $80,000 and a basis of $10,000, subject to a purchase money lien indebtedness of $30,000, which was assumed by the corporation. What are the tax consequences to Clyde and the corporation?
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
