Question
Harry, Hermione, and Ron formed an S corporation called Bumblebore. Harry and Hermione both contributed cash of $29,400 to get things started. Ron was a
Harry, Hermione, and Ron formed an S corporation called Bumblebore. Harry and Hermione both contributed cash of $29,400 to get things started. Ron was a bit short on cash but had a parcel of land valued at $69,800 (basis of $58,800) that he decided to contribute. The land was encumbered by a $40,400 mortgage. What tax bases will each of the three have in his or her stock of Bumblebore?
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
978-0470571439
