Question
Please consider the following, and answer the associated questions. John contributes land (value = $400,000, basis = $300,000, associated mortgage = $330,000) to the Durant
Please consider the following, and answer the associated questions.
John contributes land (value = $400,000, basis = $300,000, associated mortgage = $330,000) to the Durant Company in exchange for a 20% ownership interest, and $35,000 cash.
1. What is Johns tax treatment if Durant is a partnership and (b) Durant is an S corporation?
2. What would your answer be if Durant is an S corporation, and other shareholders with an ownership interest of 65% are also involved in the exchange?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
