Question
Assume that John and Nan form a corporation. John transfers a property (A/B $200, FMV = $1,000) for 100 shares. Nan contributes $50 and $950
Assume that John and Nan form a corporation. John transfers a property (A/B $200, FMV = $1,000) for 100 shares. Nan contributes $50 and $950 worth of services to the corporation for 100 shares. Each share is worth $10.
(b) What is Nan’ recognized gain?
c)What is Nan’s stock basis in the corporation?
d) What is the corporation’s basis in the property?
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Comparative international accounting
Authors: Christopher nobes, Robert parker
9th Edition
273703579, 978-0273703570
