Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 4 Points Suzanne, Beth. Jackie, and Christine incorporate their psychiatry practice (Babbling Lunatics, Inc.) with the following investments: A) Suzanne contributes her copyright

image text in transcribed
Question 1 4 Points Suzanne, Beth. Jackie, and Christine incorporate their psychiatry practice (Babbling Lunatics, Inc.) with the following investments: A) Suzanne contributes her copyright (basis of $59,000 and FMV of $124,000) for 9500 shares of Lunatic stock, worth $81,000. The corporation also assumed her $43,000 of business debts. B) Beth contributes her real estate (basis of $475,000, FMV of $271.000) in exchange for 9100 shares of Lunatic stock, worth $408,000, and received $93,000 cash. C) Jackie contributes her patent (basis of $280,000, FMV of $473,000) for 7300 shares of Lunatic stock worth $373.000. The corporation also assumed her $100.000 martsage, which Jackie took in order to pay her past due gambling losses. D) Christine contributes accounting services to the corporation (basis of $0. FMV of $90,000) for 1.500 shares of Lunatic. Inc. stock worth $90,000 What is the percentage of ownership by the property contributing shareholder group? 80% B 95% some other amount D 100%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting International

Authors: Anthony A. Atkinson, Robert S. Kaplan, S. Mark Young

4th Edition

0131230263, 978-0131230262

More Books

Students also viewed these Accounting questions

Question

b. Is it an undergraduate or graduate level course?

Answered: 1 week ago

Question

Understand the reasons for engaging consultants

Answered: 1 week ago