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C12-Chp-04-3-Class Exercise on Cont to Corp

C12-Chp-04-3-Class Exercise on Cont to Corp - 1 Problem...

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1. Problem e38f5fc1277dd0f0d9605574b7fcd51016bb6193.xls Page 1 of 2 Transfer of Assets to Controlled Corporation- Cases 1, 2 and 3. Problem - Ted transfers land with a basis of $800,000 and a FMV of $1,200,000 to a new corporation in exchange for all of the stock of the new company. Corporation assumes debt on the property in Cases 2 and 3. Case 1 Case 2 Case 3 Ted owned a land with a basis of $800,000 $800,000 $800,000 Land-Basis Ted's land had a FMV of $1,200,000 $1,200,000 $1,200,000 Land-FMV Debt on land (assumed by corp) $0 $300,000 $1,100,000 Land-Debt Ted receives stock (100%) - FMV $1,200,000 $900,000 $100,000 Stock-FMV Ted's realized gain? 1001 Ted's "recognized" gain? 351, 357 Ted’s basis in stock received? 358 Corportion's recognized gain? 118, 1032 Corporation’s basis in the land? 362 1. Shareholder gain or loss? Case 1 Case 2 Case 3 1001 Amount realized by Stockholder: 1.1001-1 Stock received by Stockholder-FMV 1.1001-2(a) Value of other assets received Decrease in stockholder's debt 357(a) Total value received Basis Given by Stockholder: Cash given by Stockholder Basis of other assets given Total basis given by Stockholder
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