Question
1)Tom creates a C Corporation on 1/1/20 in exchange for 100% of common stock of the Corporation and brings technical equipment to the Corporation. Details
1)Tom creates a C Corporation on 1/1/20 in exchange for 100% of common stock of the Corporation and brings technical equipment to the Corporation.
Details of the equipment are as follows:
Original cost of the equipment$50,000
Accumulated depreciation on 1/1/20 $30,000
Fair Market Value of the equipment $25,000
a/ What is Tom basis in the stock of the Corporation?
b/ What is the basis of the equipment in the books of the Corporation?
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Financial Accounting in an Economic Context
Authors: Jamie Pratt
10th edition
978-1-119-3061, 1119306167, 978-1119444367
