Question
Ivan incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporations stock. The
Ivan incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporations stock. The property transferred to the corporation had the following fair market values and adjusted bases: |
FMV | Adjusted Basis | ||||||||||||||||||||||||
Inventory | $ | 10,700 | $ | 27,250 | |||||||||||||||||||||
Building | 53,000 | 52,000 | |||||||||||||||||||||||
Land | 77,250 | 44,500 | |||||||||||||||||||||||
Total | $ | 140,950 | $ | 123,750 | |||||||||||||||||||||
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