LO.1, 2, 3 Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000)

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LO.1, 2, 3 Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to Swift Corporation for 90% of the stock. The property is subject to a liability of $60,000, which Swift assumes.

a. What is the basis of the Swift stock to Adam?

b. What is the basis of the property to Swift Corporation?

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South Western Federal Taxation 2013 Corporations Partnerships Estates And Trusts

ISBN: 9781133495574

36th Edition

Authors: William H. Hoffman, William A. Raabe, James E. Smith, David M. Maloney

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