Homework Clinic

Social Science Clinic => Accounting => Topic started by: anjilletteb on Sep 13, 2020

Title: Daniel transfers land with a $92,000 adjusted basis and a $100,000 FMV to a corporation in a Sec. ...
Post by: anjilletteb on Sep 13, 2020

Question 1

Bob transfers assets with a $100,000 FMV (basis $60,000) and $70,000 of liabilities to a corporation in exchange for 100% of the corporation's stock with a FMV of $30,000. The corporation assumes the $70,000 mortgage. The transfer qualifies under Sec. 351. What is Bob's gain recognized on the transfer?
◦ $0
◦ $10,000
◦ $30,000
◦ $40,000

Question 2

Daniel transfers land with a $92,000 adjusted basis and a $100,000 FMV to a corporation in a Sec. 351 transfer. Immediately after the transfer, Daniel owns 100% of the corporation-stock with a FMV of $15,000. In addition, $85,000 of liabilities are assumed by the corporation with respect to the transfer. No other property is transferred. Daniel's basis in the stock is
◦ $0.
◦ $7,000.
◦ $8,000.
◦ $100,000.

Title: Daniel transfers land with a $92,000 adjusted basis and a $100,000 FMV to a corporation in a Sec. ...
Post by: kaykay69 on Sep 13, 2020

Answer 1

$10,000

Answer 2

$7,000.

Title: Re: Daniel transfers land with a $92,000 adjusted basis and a $100,000 FMV to a corporation in a Sec
Post by: Bobby Agustin on Dec 18, 2021

Thank you