Question
Adam contributes land with a basis of $120,000 and a fair market value of $250,000 to corporation in exchange for 100% of the corporation stock.
Adam contributes land with a basis of $120,000 and a fair market value of $250,000 to corporation in exchange for 100% of the corporation stock. The land is subject to a $50,000 mortgage. In addition, Adam receives $30,000 cash from the corporation in addition to the stock. What is Adams basis in the stock?
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley
8th Canadian Edition
111959457X, 978-1119594574
