QUESTION 1 Questions 1-15 are based on the following facts: Five individuals, A, B, C, D, and E, formed X Co. After making the following transfers to X Co., they own 100% of X Co: A $40,000 cash and $15,000 worth of services B Property: FMV $50,000 BASIS $50,000 MORTGAGE $30,000 C Property: FMV $80,000 BASIS $20,000 MORTGAGE $30,000 D Property: FMV $26,000 BASIS $56,000 E Property: FMV $73,000 (capital asset) BASIS $30,000 MORTGAGE $3,000 (Depreciation recapture potential of $7,000) In return, they receive the following from X Co: A $55,000 Stock B $15,000 Stock + $5,000 Cash C $42,000 Stock + $8,000 Cash D $22,000 Stock + $4,000 Cash E $52,000 Stock + $18,000 Cash A's reportable income and his basis in the X Co. stock is 01. $15,000 ordinary income and $55,000 basis 2. $55,000 ordinary income and $55,000 basis 3. None of these 4.$15,000 ordinary income and $51,000 basis Click Save and Submit to save and submit. Click Save All Answers to save all answers. TAK SAW PXO Remaining Time: 3 hours, 06 minutes, 35 seconds. Question Completion Status: QUESTION 2 See Question 1 for the facts. X Co.'s net recognized gain or loss or expense on the distribution to A is 1. $15,000 expense 2. $40,000 gain and $15,000 expense 3.$55,000 expense 4. None of these QUESTION 3 See Question 1 for the facts. B's recognized gain or loss is 1.0 2. None of these. 3. $5,000 gain 4.$35,000 gain Click Save and Submit to save and submit. Click Save All Answers to save all answers. Remaining Time: 3 hours, 06 minutes, 16 seconds. Question Completion Status: QUESTION 4 See Question 1 for the facts. B's basis in the X Co. stock is $15,000 $50,000 $55,000 None of these. QUESTION 5 See Question 1 for the facts. X Co.'s basis in the property received from Bis 1.$55,000 2. $25,000 3. None of these. 4.$50,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Remaining Time: 3 hours, 06 minutes, 02 seconds. Question Completion Status: QUESTION 6 See Question 1 for the facts. C's recognized gain or loss is 1. None of these. 2. $18,000 gain 03.$8,000 gain 4.0 QUESTION 7 See Question 1 for the facts. C's basis in the X Co. stock is 1. $80,000 Q2. $20,000 3. None of these. 4.0 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Remaining Time: 3 hours, 05 minutes, 48 seconds. Question Completion Status: QUESTIONS See Question 1 for the facts. X Co.'s basis in the property received from C is 1. $38,000 2. $80,000 3. None of these. 4.0 QUESTION 9 See Question 1 for the facts. D's recognized gain or loss is 1. None of these 2. loss 3. loss 4.0 Click Save and Submit to save and submit. Click Save All Answers to save all answers. See Question 1 for the facts. D's basis in the X Co. stock is 1.$52,000 2. $56,000 3. $22,000 4. None of these. QUESTION 11 See Question 1 for the facts. X Co.'s basis in the property received from Dis 1. $47,000 2. $56,000 3. None of these. 4. $26,000 QUESTION 12 See Question 1 for the facts. E's recognized gain or loss is 1. $11,000 ordinary income; $7,000 capital gain 2. $11,000 capital gain; $7,000 ordinary income 3. None of these. 4.$18,000 capital gain QUESTION 13 See Question 1 for the facts. E's basis in the X Co. stock is 1. $30,000 2. $73,000 3. $27,000 4. None of these Question Completion Status: QUESTION 14 See Question 1 for the facts. X Co.'s basis in the property received from E is 1.548,000 2.573,000 3. $30,000 4. None of these QUESTION 15 See Question 1 for the facts. X Co.'s recognized gain or loss on the distribution to E is 1. $52,000 gain 2. loss 3. None of these 4.0
