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please show workings with explanation 6. Nancy, Guy, and Rod form Goldfinch Corporation with the following consideration Fair Market Basis Value Adjusted From Nancy- Cash
please show workings with explanation
6. Nancy, Guy, and Rod form Goldfinch Corporation with the following consideration Fair Market Basis Value Adjusted From Nancy- Cash $120,000 $120,000 Inventory 90,000 130,000 From Guy- Land and building 120,000 250,000 From Rod Legal & accounting services 0 50,000 Goldfinch issues its 500 shares of stock as follows: 250 to Nancy, 200 to Guy, and 50 to Rod. In addition, Guy gets $50,000 in cash. a. Does Nancy, Guy, or Rod recognize gain (or income)? b. What basis does Guy have in the Goldfinch stock? c. What basis does Goldfinch Corporation have in the inventory? In the land and building? d. What basis does Rod have in the Goldfinch stock Step by Step Solution
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