Question
Flores, Lamonica, Stabler, Plunkett, & Gannon incorporate their partnership. Each member makes the following contributions to the new corporation, Raiders QB, Inc. (Raiders, Inc.): A)
Flores, Lamonica, Stabler, Plunkett, & Gannon incorporate their partnership. Each member makes the following contributions to the new corporation, Raiders QB, Inc. (Raiders, Inc.):
A) Flores contributes his real estate (basis of $190,064 and FMV of $340,982) for 8,217 shares of Raiders, Inc. stock, worth $317,000. The corporation also assumed his $65,330 of business debts.
B) Lamonica contributes his copyright (basis of $220,000, FMV of $365,000) for 6,054 shares of Raiders, Inc. stock, worth $371,000, and received $47,000 cash. The corporation also assumed Lamonicas $62,000 business mortgage.
C) Stabler contributes his motor home (basis of $247,923 FMV of $202,000) for 8,312 shares of Raiders, Inc. stock, worth $220,000. The corporation also gave Stabler a brand new 2018 BMW, worth $154,130.
D) Plunkett contributes his law library (basis of $280,000, FMV of $473,000) in exchange for 15,446 shares of Raiders, Inc. stock, worth $373,000, and received $144,000 cash.
E) Gannon contributes his contributes his landscaping services to the corporation (basis of $0, FMV of $68,000), for 5,932 shares of Raiders, Inc. stock, worth $155,000. The corporation also assumed his $87,000 mortgage, which Gannon took in order to pay his past due gambling losses to the MGM Grand Hotel.
Using the spreadsheet below, calculate the following (7 points each):
1) Raiders basis in the motor home contributed by Stabler.
2) Plunketts realized & recognized gains, if any.
3) Flores basis in his Raiders stock.
4) Stablers realized & recognized gains, if any.
5) Raiders basis in the law library contributed by Plunkett.
6) Stablers basis in his Raiders stock.
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