wk 5-2

Determine the basis of stock in the hands of the shareholder in each of the following instances. Assume that the 80% rule is met in all cases.

1. Contribution of property with a basis of $2,300 and an FMV of $2,700.
2. Contribution of property with a basis of $5,600 and an FMV of $7,960. The stockholder also received $1,800 cash from the corporation as part of the stock transaction.
3. Contribution of property with a basis of $9,500 and an FMV of $15,100. The stockholder also received property with an FMV of $3,000 from the corporation as part of the stock transaction.
4. Contribution of a building with an FMV of $265,000, a mortgage (assumed by the corporation) of $165,000, and a basis of $255,000.
5. Contribution of a building with an FMV of $1,830,000, a mortgage (assumed by the corporation) of $1,130,000, and a basis of $700,000.

a.	Shareholders basis in stock
b.	Shareholders basis in stock
c.	Shareholders basis in stock
d.	Shareholders basis in stock
e.	Shareholders basis in stock