Question
Facts for 8 and 9. Bill owns 1000 share of stock in BBB Corporation. John would like to contribute property with an adjusted basis of
Facts for 8 and 9.
Bill owns 1000 share of stock in BBB Corporation. John would like to contribute property with an adjusted basis of $10,000 and a fair market value of $50,000 in exchange for stock in BBB. John will also provide services to BBB with a fair market value of $30,000. John will receive shares of stock from BBB. John would like the transfers to meet the requirements for nonrecognition under section 351. Read relevant provisions of IRC Section 351. Read Reg. Section 1. 351-1 (a)(2) Examples 2 and 3.
8. What amount of income, if any, must John recognize if the trnasaction meets the nonrecognition requirements of section 351?
9. What is the least number of shares that BBB must issue to John to accomplish his goal of nonrecognition? __________ shares. Why?
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Pocket CIO The Guide To Successful IT Asset Management Get To Grips With The Fundamentals Of IT Asset Management Software Asset Management And Software License Compliance Audits With This Guide
Authors: Phara Estime McLachlan
1st Edition
1783001003, 978-1783001002
