Question
Individual A (A) transferred two capital assets (CAI andCA2) and personal liability to X Corporation (X) in a transaction that qualified for Section 351. A
Individual A ("A") transferred two capital assets ("CAI" and"CA2") and personal liability to X Corporation ("X") in a transaction that qualified for Section 351. A transferred CA1, fair market value ("FMV") $500 and adjusted basis ("AB") $300 and CA2, FMV $500 and AB $600 and a personal liability in the amount of$100to X in exchange for 100 shares of stock (FMV $900).
1. What income, gain or loss, if any, does A recognizes a result of the transaction?
ll. What is X Corporation's adjusted basis in CA2_?
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i Here Aggregate Fair Value of capital assets 500 500 1000 Aggregate basis of capital assets 300 600 ...
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
