Question
ABC Company is owned 80/20 by Adam and Betty. Charles contributes land with a basis of $10,000 and a FMV of $50,000 to ABC Company.
ABC Company is owned 80/20 by Adam and Betty. Charles contributes land with a basis of $10,000 and a FMV of $50,000 to ABC Company. in exchange for 10% of the ABC Company stock. In the same transfer, Adam contributes $100 to the corporation in exchange for a few additional shares. Prior to the transfer, Adam’s interest in ABC Company was worth $360,000.
What is Adam's Charles and ABC Company tax consequence for this scenario?
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South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
39th Edition
978-1305399884
