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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. Now use following (added) info & complete worksheet. 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) Minus: Boot received (include all liabilities transferred) §358(d)
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