Insert Table Chart Text Shape Media Comment 1) Lulu-Belle incorporates her law practice by transferring her computer equipment (basis of $20,000, FMV of $9000) to her newly formed corporation, Lutz, Inc., in exchange for 3000 shares of Hte stock, worth S9000 hte also assumed Lulu-Bele's S 75,000 of iabilities. $72,000 of the liabilities was business related; the remaining $3000 was Lulu-Belle's debt to a local tabloid that promised not to expose her embezzlement from her client's funds to catch up on her gambling losses. How much gain, if any, must Lulu-Belle recognize on this transaction? a: $64,000 b: $3,000 c: $75,000 d: $55,000 ,2) How much is LR Inc.'s basis in the property transferred from Lulu-Bele? a: $75,000 b: $84,000 c: $95,000 d: $64,000 _3) How75004 LA-Bele's basis in herku stock? b: $O c $55,000 d some other amount 4) Jim transfers land (basis of $280,000 & FMV of $771,000) to Hasentus Corporation in exchange for 90% (9000 shares) of assumes Jims mortgage on the land of $135,000. The mortgage is connected with Jims business. On these facts stock, worth $636,000. Hasentus also r Spac a: Jim has a recognized gain of $491,000 b: Jim has a recognized gain of $135,000 c Jim does not have any recognized gain on this transaction d. None of the above 5)Assume -same facts as the prevous question except Jim receives a 70% ow enhp nterest (7000 shares) ntsmenta corporabon. The other 30% shareholder (3000 shares) contrbuted services to the corporation. What happens a Jm has a recognized gain of $491,000. has a recognized gain of $135,000 c: Jim does not have any recognized gain on this transaction d None of the above 2 MacBook Air 2 4 Insert Table Chart Text Shape Media Comment 1) Lulu-Belle incorporates her law practice by transferring her computer equipment (basis of $20,000, FMV of $9000) to her newly formed corporation, Lutz, Inc., in exchange for 3000 shares of Hte stock, worth S9000 hte also assumed Lulu-Bele's S 75,000 of iabilities. $72,000 of the liabilities was business related; the remaining $3000 was Lulu-Belle's debt to a local tabloid that promised not to expose her embezzlement from her client's funds to catch up on her gambling losses. How much gain, if any, must Lulu-Belle recognize on this transaction? a: $64,000 b: $3,000 c: $75,000 d: $55,000 ,2) How much is LR Inc.'s basis in the property transferred from Lulu-Bele? a: $75,000 b: $84,000 c: $95,000 d: $64,000 _3) How75004 LA-Bele's basis in herku stock? b: $O c $55,000 d some other amount 4) Jim transfers land (basis of $280,000 & FMV of $771,000) to Hasentus Corporation in exchange for 90% (9000 shares) of assumes Jims mortgage on the land of $135,000. The mortgage is connected with Jims business. On these facts stock, worth $636,000. Hasentus also r Spac a: Jim has a recognized gain of $491,000 b: Jim has a recognized gain of $135,000 c Jim does not have any recognized gain on this transaction d. None of the above 5)Assume -same facts as the prevous question except Jim receives a 70% ow enhp nterest (7000 shares) ntsmenta corporabon. The other 30% shareholder (3000 shares) contrbuted services to the corporation. What happens a Jm has a recognized gain of $491,000. has a recognized gain of $135,000 c: Jim does not have any recognized gain on this transaction d None of the above 2 MacBook Air 2 4
