C11-Chp-13-1A-Compare entities-Organization-Excel

C11-Chp-13-1A-Compare entities-Organization-Excel - Problem

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Problem 59f0545f35978ab956b756ae4fb007e3575a62a7.xls Page 1 of 3 Compare Entities - Contributing Assets for Ownership Interest Peggy contributed land to a new business in return for a 50% ownership interest. On the same day, for a 50% interest, another investor contributed cash of $50,000 Peggy's land had a Fair Market Value of: $90,000 Peggy's land had a BASIS of: $10,000 Business assumed Peggy's DEBT on the Land $40,000 C Corp. Partnership 1 2 3 1. Stockholder's Gain or Loss on Exchange § 351, 357(c) 1 Value of all consideration received by stockholder: 2 Value of Stock received $50,000 3 Value of Assets (other than stock) received 4 Stockholder's debt assumed by other party 1.1001-2(a) 5 Minus: Cost (basis) of all property transferred to corporation 6 Equals Gain Realized 1001 7 Recognized Gain: Lesser of gain realized or 1 boot (include excess debt) received 351(b), 357(a), (c ) 2. Stockholder's Basis in Stock Received § 358(a)(1) 8 Basis of all property transferred to Corporation 9 Minus boot received (include all debt transferred to corporation) 10 Plus gain recognized 2 11 Equals basis of stock received 12 3. Corporation's Gain on the Exchange §118(a), 1032 4. Corporation's Basis in Property Received § 362(a) 13 Basis of non-cash property transferred by stockholder 14 Add: Gain recognized by stockholder 3 15 Equals: Basis of non-cash property to corporation 1. Partner's Gain on investment in Partnership § 721,752,731 Note: "Partner-1" is investing in the Partnership. 1 Partner-1's asset had a VALUE of $90,000 2 Partner-1's asset had a BASIS of $10,000 3 Partnership capital % received by Partner-1 50% 4 Partnership capital % of other partners 50% 5 Partnership's debt before investment 6 Partnership's debt assumed by Partner-1 § 752(a) 7 Partner-1's debt assumed by PARTNERSHIP 8 Partner-1's debt assumed by OTHER PARTNERS
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This note was uploaded on 03/09/2012 for the course ACCT 6120 taught by Professor Godfrey,h during the Spring '08 term at UNC Charlotte.

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C11-Chp-13-1A-Compare entities-Organization-Excel - Problem

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