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C12-Chp-04-3B-Corporate-Organization - 357(a 358(a 3 What...

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1. Corporate Organization File: 72c1f7fddf0a035cb5b6c609e75a891b52c85882.xls Page 1 of 1 Text Code Jan has asked for your assistance with her plan to move her business assets from the proprietorship form of organization to a newly formed corporation. Please study her balance sheet below and answer her questions. Assets of Jan Company - A Proprietorship Book Value FMV Cash $60,000 $60,000 Receivable 10,000 10,000 Land & Buildings - Cost & value (FMV) 50,000 140,000 Accumulated Depreciation (10,000) Total Assets $110,000 $210,000 Mortgage on Land and Building 10,000 10,000 Jan's Owner equity $100,000 $200,000 351 Jan transfers assets & debt to her new corp: "Jan Corporation." Jan receives 1,000 shares (100%) of $10 par stock worth $200,000. 61 1 What is Jan's realized gain on this transaction? 1001 Value of all property received by Jan Basis of all property given by Jan Gain or loss realized by Jan 351 2 What is Jan's recognized gain on this transaction?
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Unformatted text preview: 357 (a) 358 (a) 3 What is Jan's basis in the stock of Jan Corporation? 1223 (1) 4 When does Jan's holding period start for the stock received? 1032 5 What will be Jan Corporation's gain on loss on the exchange? 362 a 6 What will be Jan Corporation's cost basis of assets received? 1223 (2) 7 When does Jan Corp. holding period start for assets received? 357 ( c) 8 How would your answers above change if you learn that Jan had borrowed a total of $130,000, giving a mortgage on the building? She used the funds to invest in the stock market. 9 If Jan recognizes a gain on contribution of multiple properties, how does the corporation allocate the gain to the properties? 362 ( c) 10 What rule applies if the State of North Carolina gives Jan 1.36 -2 Corp. a grant of $100,000 as incentive for locating in N. Carolina?...
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