in the current year, mick, jill and sean from ash corporation. mick contributes land (a capital asset) having a $75,000 fmv purchased as an investment four years ago for $20,500 in exchange for 75 shares of ash stock. jill contributes machinery ( Sec. 1231 property) purchased four years ago and used in her business in exchange for 75 shares of ash stock. immediately before the exchange, the machinery had a $185,000 asjusted basis and a 75,000 fmv. sean contributes services worth $40,000 in exchange for 40 shares of ash stock.

i Requirements a. b. c d. e What is the amount of Mick's recognized gain or loss? What is Mick's basis in his Ash shares? When does his holding period begin? What is the amount of Jill's recognized gain or loss? What is Jill's basis in her Ash shares? When does her holding period begin? How much income, if any, does Sean recognize? What is Sean's basis in his Ash shares? When does his holding period begin? What is Ash's basis in the land and the machinery? When does its holding period begin? How does Ash treat the amount paid to Sean for his services? How would your answers to Parts a through g change if Sean instead contributed $8,000 in cash and services worth $32,000 for his 40 shares of Ash stock? f. g. h. Print Done