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Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 1 0 0 percent of the corporation
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for percent of the corporations stock. The property transferred to the corporation had the following fair market values and adjusted bases:
FMV Adjusted Basis
Inventory $ $
Building
Land
Total $ $
The corporation also assumed a mortgage of $ attached to the building and land. The fair market value of the corporations stock received in the exchange was $ The transaction met the requirements to be taxdeferred under Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
Assume the corporation assumed a mortgage of $ attached to the building and land. Assume the fair market value of the building is now $ and the fair market value of the land is $ The fair market value of the stock remains $
g What is the corporations adjusted basis in each of the assets received in the exchange? Do not round intermediate calculations.
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