CHAPTER4 tax problem-4302 - CHAPTER 4 SUPPLEMENTAL HANDOUT C CORPORATION TAXATION PROBLEMS 1 Wen Minthu Lorena and Norma form Vasquez Corporation with

CHAPTER4 tax problem-4302 - CHAPTER 4 SUPPLEMENTAL HANDOUT...

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CHAPTER 4 SUPPLEMENTAL HANDOUT C CORPORATION TAXATION PROBLEMS 1.Wen, Minthu, Lorena and Norma form Vasquez Corporation with the following investments:Consideration TransferredBasis To Fair Market Number OfTransferorValueShares IssuedFrom Wen—Personal Services $ -0- $ 30,000 Rendered To VasquezCorporationFrom Minthu—Equipment 345,000 300,000 From Lorena—Unrealized AccountsReceivable -0- 150,000 130 * From Norma—Land And Building 210,000 450,000 Mortgage On Land And 300,000 300,000 Building* - Lorena receives $20,000 in Cash in addition to the 130 shares of stock.The Mortgage transferred by Norma is assumed by Vasquez Corporation. The fair market value ofeach share of stock of Vasquez Corporation is $1,000.(a)Determine the Recognized Gain Or Loss, if any, for Wen.(b)Determine Wen's basis in her shares of stock in Vasquez Corporation.(c)Determine the Recognized Gain Or Loss, if any, for Minthu.(d)Determine Minthu's basis in her shares of stock in Vasquez Corporation.(e)Determine the basis to Vasquez Corporation in the Equipment transferred by Minthu.(f)Determine the Recognized Gain Or Loss, if any, for Lorena. 30 300 150
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