Question
Tony Stewart forms Nascar Co. by transferring property (basis of $145, FMV of $865) which is subject to a mortgage of $310. A month prior
Tony Stewart forms Nascar Co. by transferring property (basis of $145, FMV of $865) which is subject to a mortgage of $310. A month prior to incorporating Nascar Co., Tony borrows $175 for personal purposes in exchange for a second mortgage on the property. Nascar Co. issues stock worth $380 to Tony and assumes the two mortgages on the property.
What is Tony's recognized gain, as well as his basis? What is Nascar Co.'s basis?
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Forensic And Investigative Accounting
Authors: Crumbley D. Larry, Fenton Edmund D., Jr. Smith G. Stevenson
9th Edition
0808053221, 9780808053224
