Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporations stock. The property transferred to the corporation had the following fair market values and adjusted bases:

	FMV			Adjusted Basis
Inventory	$	15,500		$	7,500
Building		72,000			32,500
Land		196,000			89,500
Total	$	283,500		$	129,500

The fair market value of the corporations stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ramon. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)

1.

value: 1.00 points

Required information

a. What amount of gain or loss does Ramon realize on the transfer of the property to his corporation?

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ProblemDifficulty: 2 MediumLearning Objective: 19-02 Compute the tax consequences to the parties to a tax-deferred corporate formation.

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2.

value: 1.00 points

Required information

b. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation?

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ProblemDifficulty: 2 MediumLearning Objective: 19-02 Compute the tax consequences to the parties to a tax-deferred corporate formation.

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3.

value: 1.00 points

Required information

c. What is Ramons basis in the stock he receives in his corporation?

References

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