Question
Individuals A and B are planning to form CORPORATION C, which will engage in manufacturing. A will contribute to machinery and equipment with a fair
Individuals A and B are planning to form CORPORATION C, which will engage in
manufacturing. A will contribute to machinery and equipment with a fair market
value of $100M, and an adjusted basis of $45M. Y will contribute $100M of cash.
CORPORATION C will issue to each of A and B, 100 shares of voting common stock in
exchange for the property contributed. Consequently, there will be 200 common
shares outstanding with a total initial value of $200M. What are the tax consequences
to A, B, and CORPORATION C in this transaction? See 351, 358, 362, 1001, 1032, and
1223.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
