1. Gearty and Olinto organized The Worthington Corp., which issued voting common stock with a fair market...

Question:

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

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: