4-26 - = 55,000 9,000 + 9,000 = $55,000 (f) Pines Basis in...

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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) Pines Basis in Equipment = Johns Basis in Pine Stock + Johns Recognized Gain = 55,000 + 9,000 = $64,000 (g) Lucys Realized Gain = FMV of Stock Received - Basis to Transferor = (30 * 3,000) 25,000 = $65,000 Lucys Recognized Gain = Lesser of Boot Received or Realized Gain = $0 (h) Lucys Basis in Pine Stock = Basis to Transferor = $25,000 (i) Pines Basis in Secret Process = Lucys Basis in Pine Stock = $25,000 (j) Sylvias Realized Gain = FMV of Stock Received - Basis to Transferor = (10 * 3,000) 30,000 = $0 Sylvias Recognized Gain = Lesser of Boot Received or Realized Gain = $0 (k) Sams Basis in Pine Stock = Basis to Transferor = $30,000...
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