Question
Creditor A (Not shareholder) loaned $100,000 to Corp. X Corp. is worthless and insolvent, A contributes her debt for 10% of Corporation X stock Any
Creditor A (Not shareholder) loaned $100,000 to Corp. X Corp. is worthless and insolvent, A contributes her debt for 10% of Corporation X stock
Any gain recognized by A (Yes/No) _____________
Any taxable income recognized by Corp. X (Yes/No) _____________
What Code Section for Part b. above _______________
In the question above, assume A is a shareholder and Corp. X is solvent. A contributes the loan to capital and receives stock in Corp. X worth less than the loan
Any gain recognized by A (Yes/No) _____________
Any taxable income recognized by Corp. X (Yes/No) _____________
What Code Section for Part b. above _______________
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