Question
Nancy, Guy, and Rod form Goldfinch Corporation with the following consideration. Adjusted Basis Fair Market Value Shares Issued From Nancy Cash $130,000 $130,000 250 Inventory
Nancy, Guy, and Rod form Goldfinch Corporation with the following consideration.
| Adjusted Basis | Fair Market Value | Shares Issued | |
| From Nancy | |||
| Cash | $130,000 | $130,000 | 250 |
| Inventory | 105,000 | 190,000 | |
| From Guy | |||
| Land and building | 130,000 | 330,000 | 210 |
| From Rod | |||
| Legal and accounting services to incorporate | 0 | 40,000 | 40 |
In addition, Guy receives $55,000 in cash.
DO NOT ENTER ANY COMMAS, DECIMALS OR DOLLAR SIGNS IN YOUR ANSWERS. USE THE NUMERAL 0, NOT THE WORDS ZERO OR NONE IF APPLICABLE.
Please answer the following. Remember to consider Exhibits 18.1 and 18.2 in your textbook.
| a. The amount of gain or income recognized by Nancy is b. The amount of gain or income recognized by Guy is c. The amount of gain or income recognized by Rod is d. Guy's basis in his Goldfinch stock is e. Goldfinch Corporation's basis in the inventory contributed by Nancy is |
| f. Goldfinch Corporation's basis in the land and building contributed by Guy is |
| g. Rod's basis in his Goldfinch stock is . |
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