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Pls help on H, 11, and 12 Several years ago, your client, Brooks Robertson, started an office cleaning service. His business was very successful, owing

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Pls help on H, 11, and 12

Several years ago, your client, Brooks Robertson, started an office cleaning service. His business was very successful, owing much to his legacy as the greatest defensive third baseman in major league history and his nickname, "The Human Vacuum Cleaner." Brooks operated his business as a sole proprietorship and used the cash method of accounting. Brooks was advised by his attorney that it is too risky to operate his business as a sole proprietorship and that he should incorporate to limit his liability. Brooks has come to you for advice on the tax implications of incorporation. His balance sheet is presented below. Under the terms of the incorporation, Brooks would transfer the assets to the corporation in return for 100 percent of the company's common stock. The corporation would also assume the company's liabilities (payables and mortgage). Answer the following questions: a. How much gain or loss (on a per-asset basis) does Brooks realize on the transfer of each asset to the corporation? b. How much, if any, gain or loss (on a per-asset basis) does Brooks recognize? c. How much gain or loss, if any, must the corporation recognize on the receipt of the assets of the sole proprietorship in exchange for the corporation's stock? d. What tax basis does Brooks have in the corporation's stock? e. What is the corporation's adjusted tax basis in each asset it receives from Brooks? Complete this question by entering your answers in the tabs below. In consideration of whether or not the corporation can deduct liabilities when paid, will it matter which accounting method is used? Complete this question by entering your answers in the tabs below. Which accounting method should the corporation use? h. Brooks was depreciating the equipment ( 200 percent declining balance) and building (straight-line) using MACRS when it was held inside the proprietorship. How will the corporation depreciate the equipment and building? Assume Brooks owned the equipment for four years (seven-year property) and the building for six years. i-1. In consideration of whether or not the corporation can deduct liabilities when paid, will it matter which accounting method is used? i-2. Which accounting method should the corporation use? Complete this question by entering your answers in the tabs below. Brooks was depreciating the equipment (200 percent declining balance) and building (straight-line) using MACRS when it was held inside the proprietorship. How will the corporation depreciate the equipment and building? Assume Brooks owned the equipment for four years (seven-year property) and the building for six years

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