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120) Joan transfers land (a capital asset) having a $20,000 adjusted basis to Jet Corporationin a transaction qualifying under Sec. 351. In exchange, she received 50 shares of Jet Corporation common stock valued at $50,000, a $15,000 Jet Corporation bond due in 10 years, and a $10,000 Jet Corporation note due in 3 years. What tax issues should Joan consider with respect to the transfer?a)What is the amount of Joan's realized gain or loss? What is the amount of Joan's recognized gain or loss? What is the character of Joan's recognized gain or loss?b)What is Joan's basis in her stock? What is Joan's basis in the bond? What is Joan's basis in the note?c)What is Jet Corporation's basis in the land?Answer: Page Ref.: C:2-17 through C:2-19Objective: 438*You can buy complete chapters by: Contact Us: [email protected]
121) Several years ago, John acquired 200 shares of Jersey Corporation stock directly from the corporation for $150,000 in cash. This year, he sold the stock to Bill for $85,000. What tax issues should John consider with respect to the stock sale?Page Ref.: C:2-32 and C:2-33Objective: 7122) Will, a shareholder in Wiley Corporation, lent money to the corporation. The corporation is unable to repay him. What tax issues should Will consider with respect to theloan?