Question
Mr. Trent transferred three apartment buildings to a new corporation in exchange for all its stock. The facts pertaining to the buildings were: Building Basis
Mr. Trent transferred three apartment buildings to a new corporation in exchange for all its stock. The facts pertaining to the buildings were:
| Building | Basis | Value | Mortgage | Recapture Potential |
| 1 | $10,000 | $100,000 | $60,000 | $0 |
| 2 | 15,000 | 80,000 | 0 | 5,000 |
| 3 | 20,000 | 30,000 | 0 | 4,000 |
What gains are realized and recognized on each building?
What is the character of the gains?
What is the corporation’s basis in each building?
What is Mr. Trent’s basis in his stock?
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A 1 1000006000010000 30000 2 8000015000 65000 3 3000020000 10000 B It is capital gain and whether ...
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The Legal Environment of Business
Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards
11th Edition
9781133419716, 538473991, 1133419712, 978-0538473996
