Chapter 13 Fall 11 with solutions

Chapter 13 Fall 11 with solutions - ABCD Corporate...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Stewart – Tax 1 – Chapter 13 1 ABCD Corporate Formation (C or S Corp) Shareholder Transferred Transferor Shareholder/Transferor % of Stock Transferor Assets/Liabilities Adj. Basis FMV Consideration Received Owned A Land $ 10,000 $60,000 100 Shs ABCD Corp Stock 33 1/3 (10,000) Note receivable from ABCD 5 0 , 0 0 0 B Equipment 60,000 50,000 100 Shs ABCD Corp Stock 33 1/3 C Cash 25,000 25,000 50 Shs ABCD Corp Stock 16 2/3 Net FMV of contributions by property contributors 125,000 250 Shs 8 3 1 / 3 D S e r v i c e s ? 25,000 50 Shs ABCD Corp Stock 16 2/3 3 0 0 S h s 1 0 0 % Net FMV of contributions by all contributors $ 150,000 Does this qualify for non recognition of gain/loss by property transferors? Yes – Property contributors 80% control Fair market value of shares? $125k / 250 shares = $500/share Fair market value of services? D 50 shares x $500/share = $25,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Stewart – Tax 1 – Chapter 13 2 Corporations (C or S): 351 Transfer – Gain Realized/Recognized by Shareholder Gain Realized by Transferor : A B C D FMV of Stock Received (500/sh) 50,000 50,000 25,000 25,000 Money (Boot) Received FMV Nonmoney Boot Received (note) 10,000 Liabilities Relieved 0 Amount Realized 60,000 50,000 25,000 25,000 Less Basis of Property Transferred ( 10,000 ) ( 60,000 ) ( 25,000 ) ( 0 ) Gain Realized 50,000 (10,000) - 0 -
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/22/2012 for the course ACCT 403 taught by Professor White during the Fall '11 term at South Carolina.

Page1 / 6

Chapter 13 Fall 11 with solutions - ABCD Corporate...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online