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Alica and Jane for Osprey Corp. Alice transfers property FMV $200,000 AB $25,000 for 50 shares. Jane transfers property FMV $165,000 AB $50,000 and services
Alica and Jane for Osprey Corp. Alice transfers property FMV $200,000 AB $25,000 for 50 shares. Jane transfers property FMV $165,000 AB $50,000 and services as an accoutiant for Ospery (this is an organizational cost that must be capitalized by Osprey and not deducted). The Services hava FMV $35,000. Jane receives 50 shares for property and services. a. What gain does Jane recognize? b. What is Osprey's AB in property transfered by Jane? How does Osprey treat the value of services Jane renders? Note that organizational costs are capitalized and not deductable by the Corporation
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