# 4-26 - = 55,000 – 9,000 9,000 = \$55,000(f Pine’s Basis...

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ACCT 467 Kristen Jack Chapter 4 – Problem 26 2/5/2012 4-26 (a) Sam’s Realized Gain = FMV of Stock Received + Boot Received - Basis to Transferor = (30 * 3,000) + 7,000 – 30,000 = 67,000 Sam’s Recognized Gain = Lesser of Boot Received or Realized Gain = \$7,000 (b) Sam’s Basis in Pine Stock = Basis to Transferor – Boot Received + Recognized Gain = 30,000 – 7,000 + 7,000 = \$30,000 (c) Pine’s Basis in Inventory = Sam’s Basis in Pine Stock + Sam’s Recognized Gain = 30,000 + 7,000 = \$37,000 (d) John’s Realized Gain = FMV of Stock Received + Boot Received - Basis to Transferor = (30 * 3,000) + 9,000 – 55,000 = \$44,000 John’s Recognized Gain = Lesser of Boot Received or Realized Gain = \$9,000 (e) John’s Basis in Pine Stock = Basis to Transferor – Boot Received + Recognized Gain
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Unformatted text preview: = 55,000 – 9,000 + 9,000 = \$55,000 (f) Pine’s Basis in Equipment = John’s Basis in Pine Stock + John’s Recognized Gain = 55,000 + 9,000 = \$64,000 (g) Lucy’s Realized Gain = FMV of Stock Received - Basis to Transferor = (30 * 3,000) – 25,000 = \$65,000 Lucy’s Recognized Gain = Lesser of Boot Received or Realized Gain = \$0 (h) Lucy’s Basis in Pine Stock = Basis to Transferor = \$25,000 (i) Pine’s Basis in Secret Process = Lucy’s Basis in Pine Stock = \$25,000 (j) Sylvia’s Realized Gain = FMV of Stock Received - Basis to Transferor = (10 * 3,000) – 30,000 = \$0 Sylvia’s Recognized Gain = Lesser of Boot Received or Realized Gain = \$0 (k) Sam’s Basis in Pine Stock = Basis to Transferor = \$30,000...
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