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Problem 1 9 - 4 0 ( LO 1 9 - 2 ) ( Algo ) [ The following information applies to the questions displayed
Problem LO Algo
The following information applies to the questions displayed below.
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for
percent of the corporation's stock. The property transferred to the corporation had the following fair market values
and adjusted tax bases:
The corporation also assumed a mortgage of $ attached to the building and land. The fair market value of the
corporation's stock received in the exchange was $
Note: Negatlve amount should be Indlcated by o minus sign. Leave no answer blank. Enter zero If appllcable.
Problem Part g Algo
g Suppose the corporation assumed a mortgage of $ attached to the building and land. The fair market value of the building
is $ and the fair market value of the land is $ The fair market value of the stock remains $
What is the corporation's adjusted tax basis in each of the assets received in the exchange?
Note: Do not round Intermedlate calculations.
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