T11F-Chp-13-5C-Transfer Assets to Corp-Worksheet

T11F-Chp-13-5C-Transfer Assets to Corp-Worksheet -...

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Tab:Problem File: b284caa2b2b5df3f35936896927da2bb94232f01.xls Page 1 of 2 Transfer to Controlled Corporation Jon transfers land, a capital asset to Dee Corp. in exchange for all its stock. (New Corporation) The land had an adjusted basis to Jon of $50,000 The land had a FMV of 100,000 First assume the land is debt-free. What is gain realized? Recognized? Stock Basis? Sec. 61 and 1001. Sec. 351(a). Sec. 358(a)(1). Sec. 362. Dee Corp. assumes the mortgage on the land 40,000 Jon receives stock worth 60,000 Transfer of Property to Corp. for Stock 1 Compute gain or loss to stockholder §351(b) Value of all consideration received by stockholder: Dee Stock Mortgage assumed by the Corporation Minus: Basis of all property transferred to corp. Land Gain Realized Gain Recognized: Lesser of gain realized or boot received (include excess debt) §357(c) 2 Compute basis of stock to stockholder §358 Basis of property invested§358(a)(1) Plus: Gain recognized §358(a)(1)(B)
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This note was uploaded on 03/09/2012 for the course ACCT 4220 taught by Professor Burton during the Spring '08 term at UNC Charlotte.

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T11F-Chp-13-5C-Transfer Assets to Corp-Worksheet -...

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