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In 2015?,Curt?,Jay?,and Fiona form Sirens Corporation.Curt contributes land? (a capital? asset) having a $100,000 FMV in exchange for 90 shares of Sirens stock. He purchased
In 2015?,Curt?,Jay?,and Fiona form Sirens Corporation.Curt contributes land? (a capital? asset) having a $100,000 FMV in exchange for
90 shares of Sirens stock. He purchased the land in 2013 for $140,000.Jay contributes machinery? (Sec. 1231 property purchased in 2012?)
having a $75,000 adjusted basis and a $60,000 FMV in exchange for 60 shares of Sirens stock.Fiona contributes services worth $40,000 in exchange for 30 shares of Sirens stock.
a. | What is the amount of Curt?'srecognized gain or? loss? |
b. | What is Curt?'s basis in his Sirens ?shares? When does his holding period? begin? |
c. | What is the amount of Jay?'s recognized gain or? loss? |
d | What is Jay?'s basis in his Sirens shares? When does his holding period? begin? |
e. | How much? income, if? any, does Fiona recognize? |
f. | What is Fiona?'s basis in her Sirens ?shares? When does her holding period? begin? |
g. | What is Sirens?'s basis in the land and the? machinery? When does its holding period?begin? How does Sirens treat the amount paid to Fiona for her? services? |
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