1. Gearty and Olinto organized The Worthington Corp., which issued voting common stock with a fair market...
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1. Gearty and Olinto organized The Worthington Corp., which issued voting common stock with a fair market value of $240,000. They each transferred property in exchange for stock as follows:
Property Adjusted Basis Fair Market Value Percentage of The Worthington Corp. Stock Acquired Gearty Building $80,000 $164,000 60%
Olinto Land 10,000 96,000 40%
The building was subject to a $20,000 mortgage that was assumed by The Worthington Corp. What was The Worthington Corp.’s basis in the building?
a. $60,000
b. $80,000
c. $144,000
d. $104,000
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Related Book For
Essentials Of Taxation Individuals And Business Entities
ISBN: 233160
1st Edition
Authors: Nellen/Young/Raabe/Maloney
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