How do I determine part H?

In the current year, Bill, Pam, and Dave form Elm Corporation. Bill contributes land (a capital asset) having a $60,000 FMV purchased as an investment four years ago for $15,500 in exchange for 60 shares of Elm stock. Pam contributes machinery (Sec. 1231 property) purchased four years ago and used in her business in exchange for 60 shares of Elm stock. Immediately before the exchange, the machinery had a $185,000 adjusted basis and a 60.000 FMV. Dave contributes services worth $60,000 in exchange for 60 shares of Elm stock. Requirement a. What is the amount of Bill's recognized gain or loss? Bill realizes a $ 44,500 gain and recognizes a capital gain of $44.500. Requirement b. What is Bill's basis in his Elm shares? When does his holding period begin? 60,000 and his holding period for the stock begins the day Bill's basis in the Elm shares is $ after the exchange in the current year. Requirement c. What is the amount of Pam's recognized gain or loss? Pam realizes a $ 125,000 loss and recognizes a Sec. 1231 loss of 125,000 Requirement d. What is Pam's basis in her Elm shares? When does her holding period begin? Pam's basis in the Elm shares is s 60,000 and her holding period for the stock begins the day after the exchange in the current year. Requirement e. How much income, if any, does Dave recognize? Dave recognizes ordinary income of $60,000 Requirement f. What is Dave's basis in his Elm shares? When does his holding period begin? Dave's basis in the Elm shares is 60,000 and his holding period begins the day after the exchange date. $ Requirement g. What is Elm's basis in the land and the machinery? When does its holding period begin? How does Elm treat the amount paid to Dave for his services? Let's begin by determining the basis in the land and when the holding period would begin. Elm's basis in the land is 60,000 and Elm's holding period begins the day after the exchange date. Determine the basis in the machinery and when the holding period would begin. Elm's basis in the machinery is 60,000 and Elm's holding period begins the day after the exchange date. Elm's basis in the machinery is $ 60,000 and Elm's holding period begins the day after the exchange date. Determine how Elm will treat the amount paid to Dave for his services. Elm's basis in the services would be $ 60,000 if the services were capitalized Requirement h. How would your answers to Parts a through g change if Dave instead contributed $6,000 in cash and services worth $54,000 for his 60 shares of Elm stock? a. Bill recognizes no gain or loss. th ch a capital gain of $15,500 a capital gain of $44,500 III no gain or loss. wic ordinary income of $15,500 ordinary income of $60,000 W ordinary income of $44,500. In the current year, Bill, Pam, and Dave form Elm Corporation. Bill contributes land (a capital asset) having a $60,000 FMV purchased as an investment four years ago for $15,500 in exchange for 60 shares of Elm stock. Pam contributes machinery (Sec. 1231 property) purchased four years ago and used in her business in exchange for 60 shares of Elm stock. Immediately before the exchange, the machinery had a $185,000 adjusted basis and a 60.000 FMV. Dave contributes services worth $60,000 in exchange for 60 shares of Elm stock. Requirement a. What is the amount of Bill's recognized gain or loss? Bill realizes a $ 44,500 gain and recognizes a capital gain of $44.500. Requirement b. What is Bill's basis in his Elm shares? When does his holding period begin? 60,000 and his holding period for the stock begins the day Bill's basis in the Elm shares is $ after the exchange in the current year. Requirement c. What is the amount of Pam's recognized gain or loss? Pam realizes a $ 125,000 loss and recognizes a Sec. 1231 loss of 125,000 Requirement d. What is Pam's basis in her Elm shares? When does her holding period begin? Pam's basis in the Elm shares is s 60,000 and her holding period for the stock begins the day after the exchange in the current year. Requirement e. How much income, if any, does Dave recognize? Dave recognizes ordinary income of $60,000 Requirement f. What is Dave's basis in his Elm shares? When does his holding period begin? Dave's basis in the Elm shares is 60,000 and his holding period begins the day after the exchange date. $ Requirement g. What is Elm's basis in the land and the machinery? When does its holding period begin? How does Elm treat the amount paid to Dave for his services? Let's begin by determining the basis in the land and when the holding period would begin. Elm's basis in the land is 60,000 and Elm's holding period begins the day after the exchange date. Determine the basis in the machinery and when the holding period would begin. Elm's basis in the machinery is 60,000 and Elm's holding period begins the day after the exchange date. Elm's basis in the machinery is $ 60,000 and Elm's holding period begins the day after the exchange date. Determine how Elm will treat the amount paid to Dave for his services. Elm's basis in the services would be $ 60,000 if the services were capitalized Requirement h. How would your answers to Parts a through g change if Dave instead contributed $6,000 in cash and services worth $54,000 for his 60 shares of Elm stock? a. Bill recognizes no gain or loss. th ch a capital gain of $15,500 a capital gain of $44,500 III no gain or loss. wic ordinary income of $15,500 ordinary income of $60,000 W ordinary income of $44,500