Question
Kellye, Becky, and Emily formed a corporation. In exchange for stock, Kellye contributed $50,000, Becky contributed equipment (basis $40,000 and fair market value $50,000), and
Kellye, Becky, and Emily formed a corporation. In exchange for stock, Kellye contributed $50,000, Becky contributed equipment (basis $40,000 and fair market value $50,000), and Emily performed accounting services for the corporation. Each shareholder was given a 1/3 ownership in the corporation. What amount of income should each shareholder recognize if the corporation is valued at $150,000 after formation?
| Kellye | Becky | Emily |
A.
| $0 | $0 | $0 |
B.
| $0 | $0 | $50,000 |
C.
| $0 | $10,000 | $50,000 |
D.
| $50,000 | $50,000 | $50,000 |
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Beating The Finacial Futures Market 2023 Deluxe Edition Almanac
Authors: Art Collins
1st Edition
979-8375310534
