orporate Formations Problem Mary and Todd form the MT Corporation, with a transfer of the following properties Mary $ 3 , 6 0 0 , 0 0 0 cash Todd $ 3 , 6 0 0 , 0 0 0 FMV property $ 1 , 6 0 0 , 0 0 0 tax basis Mary will receive 5 0 and Todd 5 0 of the corporate stock Complete the following Mary Todd Realized gain Recognized gain Basis of Stock MT basis in contributed asset VARIATION 1 Return to original facts ( same basis ) Todd s property is valued at $ 4 , 6 0 0 , 0 0 0 but is contributed subject to a $ 1 , 0 0 0 , 0 0 0 liability ( This means that Todd still contributes equity of $ 3 , 6 0 0 , 0 0 0 so it is still a 5 0 5 0 split of ownership Complete the following Mary Todd Realized gain Recognized gain Basis of stock MT basis in contributed asset VARIATION 2 Same as Variation 1 ( same basis ) except Todd s property is valued at $ 5 , 6 0 0 , 0 0 0 and is contributed subject to a liability of $ 2 , 0 0 0 , 0 0 0 ( Again Todd contributes $ 3 , 6 0 0 , 0 0 0 of equity ) Complete the following Mary Todd Realized gain Recognized gain Basis of stock

Question

orporate Formations Problem Mary and Todd form the MT Corporation, with a transfer of the following properties  Mary $ 3 , 6 0 0 , 0 0 0 cash Todd $ 3 , 6 0 0 , 0 0 0 FMV property $ 1 , 6 0 0 , 0 0 0 tax basis Mary will receive 5 0   and Todd 5 0   of the corporate stock  Complete the following Mary Todd Realized gain                                 Recognized gain                                   Basis of Stock                                     MT basis in contributed asset                                       VARIATION 1   Return to original facts ( same basis )   Todd s property is valued at $ 4 , 6 0 0 , 0 0 0 but is contributed subject to a $ 1 , 0 0 0 , 0 0 0 liability  ( This means that Todd still contributes equity of $ 3 , 6 0 0 , 0 0 0 so it is still a 5 0   5 0 split of ownership  Complete the following Mary Todd Realized gain                                 Recognized gain                                   Basis of stock                                     MT basis in contributed asset                                       VARIATION 2   Same as Variation 1 ( same basis ) except Todd s property is valued at $ 5 , 6 0 0 , 0 0 0 and is contributed subject to a liability of $ 2 , 0 0 0 , 0 0 0   ( Again Todd contributes $ 3 , 6 0 0 , 0 0 0 of equity ) Complete the following Mary Todd Realized gain                                 Recognized gain                                   Basis of stock

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Question

orporate Formations Problem Mary and Todd form the MT Corporation, with a transfer of the following properties: Mary $ 3 , 6 0 0 ,

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