Question
Jen & John each own 50% of JJ, Inc. (100 shares each). Jen contributes $40,000 of additional appreciated property (tax basis of $25,000) in exchange
Jen & John each own 50% of JJ, Inc. (100 shares each). Jen contributes $40,000 of additional appreciated property (tax basis of $25,000) in exchange for an additional 20 shares. John contributes $75,000 of additional appreciated property (tax basis of $55,000) in exchange for an additional 30 shares and a car worth $15,000 ($10,000 basis in the hands of the corporation). What is John's basis in the 30 shares and the car he received? Question 6 options:
a) $60,000 stock basis; $15,000 car basis b) $60,000 stock basis; $10,000 car basis c) $55,000 stock basis; $10,000 car basis d) $55,000 stock basis; $15,000 car basis
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