Absent any special provision eg Code Sec 351 a transfer of property from a

Absent any special provision eg code sec 351 a

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58. Absent any special provision (e.g., Code Sec. 351), a transfer of property from a shareholder to a corporation in return for its shares would result in: *a. full gain or loss recognitionb. partial gain or loss recognitionc. no gain or loss recognitiond. none of the above 59. The provisions of Code Sec. 351 are: 60. Susan has a gain on the transfer of property to a corporation. In order for Susan to have no gain recognition under Code Sec. 351, she must receive: 61. Mike and John form Lasveg Corporation. Mike transfers property and receives 75 shares of stock. John performs services and receives 25 shares of stock. The transactions qualify for Code Sec. 351 treatment for:
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62. James transferred machinery to a corporation in return for 80% of its stock worth $510,000 and $40,000. At the time of the exchange, James' adjusted basis in the machinery was $500,000 and its fair market value was $550,000. The machinery has been depreciated under the straight-line method, and accumulated depreciation at the time of the transfer was $70,000. As a result of this transaction: a. James recognizes no gain or loss and the $70,000 depreciation recapture potential shifts to the corporation*b. James recognizes $40,000 ordinary income and $30,000 depreciation recapture potential shifts to the corporationc. James recognizes $70,000 ordinary income and there is no recapture shift to the corporationd. James recognizes a $50,000 gain and $20,000 depreciation recapture potential shifts to the corporation 63. The following parties must attach a statement to their tax returns for the period in which the Code Sec. 351 transfer occurred: 64. Jeffrey owns 100% of HR Company. In 2011, he lent the firm $70,000. In 2013, he cancelled the debt. The results of this debt cancellation are:
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  • Fall '14
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  • Corporation, Taxation in the United States, Code Sec.

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