Roan incorporates his sole proprietorship as Best Corporation and transfers its assets to Best in exchange for all 100 shares of Best common stock and $60,000 worth of nonqualified preferred stock. The common stock has a $90,000 fair market value (FMV). The assets transferred are as follows: View the asset information. Read the requirements. Requirement a. What are the amounts and character of Roan's recognized gains or losses? Complete the table to determine the amount and character of Roan's recognized gain or loss for each asset type. If an asset does not have a gain or loss, select "N/A" for the character type. (Round the percentages to the nearest whole percent and dollar amounts to the nearest whole dollar. Use parentheses or a minus sign for losses. Complete all input fields. For amounts with a $0 balance, enter a 0 in the appropriate field.) Requirement b. What is Roan's basis in the Best common and nonqualified preferred stock? Begin by determining the adjusted basis of the common stock. (If an input field is not used in the table leave the field empty; do not select a label or enter a zero.) Requirement c. What is Best's basis in the property received from Roan? (Complete all input fields. For amounts with a $0 balance, make sure to enter a 0 in the appropriate field.) Asset Information Roan incorporates his sole proprietorship as Best Corporation and transfers its assets to Best in exchange for all 100 shares of Best common stock and $60,000 worth of nonqualified preferred stock. The common stock has a $90,000 fair market value (FMV). The assets transferred are as follows: View the asset information. Read the requirements. Requirement a. What are the amounts and character of Roan's recognized gains or losses? Complete the table to determine the amount and character of Roan's recognized gain or loss for each asset type. If an asset does not have a gain or loss, select "N/A" for the character type. (Round the percentages to the nearest whole percent and dollar amounts to the nearest whole dollar. Use parentheses or a minus sign for losses. Complete all input fields. For amounts with a $0 balance, enter a 0 in the appropriate field.) Requirement b. What is Roan's basis in the Best common and nonqualified preferred stock? Begin by determining the adjusted basis of the common stock. (If an input field is not used in the table leave the field empty; do not select a label or enter a zero.) Requirement c. What is Best's basis in the property received from Roan? (Complete all input fields. For amounts with a $0 balance, make sure to enter a 0 in the appropriate field.) Asset Information
