Question
Alice and Jane form Osprey Corporation. Alice transfers property, basis of $25,000 and value of $200,000, for 50 shares in Osprey Corporation. Jane transfers property,
Alice and Jane form Osprey Corporation. Alice transfers property, basis of $25,000 and value of $200,000, for 50 shares in Osprey Corporation. Jane transfers property, basis of $50,000 and value of $165,000, and agrees to serve as manager of Osprey for one year; in return, Jane receives 50 shares in Osprey. The value of Janes services to Osprey is $35,000.
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What gain or income do Alice and Jane recognize on the exchange?
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What is Osprey Corporations basis in the property transferred by Alice and Jane? How does Osprey treat the value of the services that Jane renders?
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Computer Accounting With QuickBooks Online
Authors: Donna Kay
3rd Edition
1264127278, 9781264127276
