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Kathy contributes the following property to the K&L S corporation for 50% of the shares: Land-FMV $70000; Tax Basis $40000; Cash $50000. The S corporation
- Kathy contributes the following property to the K&L S corporation for 50% of the shares: Land-FMV $70000; Tax Basis $40000; Cash $50000. The S corporation earns $300000 in Year 1, obtains a bank loan of $70000, and distributes $20000 to each shareholder. What is Kathys basis at the end of Year 1?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
9th Edition
0134519264, 9780134519265
