Question
Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $163,400 and fair market value of $245,100). Simon invests $196,080 of cash. They each
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Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $163,400 and fair market value of $245,100). Simon invests $196,080 of cash. They each receive 100 shares in Ion Corporation, worth $196,080, but Yvonne also receives $49,020 in cash from Ion.
Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock.
Ion Corporation has a basis of $_____ in the equipment. Yvonne has a basis of $ ______for her stock and Simon has a basis of $_____ for his stock.
Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $163,400 and fair market value of $245,100). Simon invests $196,080 of cash. They each receive 100 shares in Ion Corporation, worth $196,080, but Yvonne also receives $49,020 in cash from Ion.
Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock.
Ion Corporation has a basis of $_____ in the equipment. Yvonne has a basis of $ ______for her stock and Simon has a basis of $_____ for his stock.
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
