Author Question: Ron transfers assets with a $100,000 FMV (basis $60,000) and $70,000 of liabilities to a corporation ... (Read 43 times)

iveyjurea · **on:** Sep 13, 2020

Question 1

John transfers assets with a $200,000 FMV (basis $160,000) and $170,000 of liabilities to a corporation in exchange for 100% of the corporation's stock with a FMV of $130,000. The corporation assumes the $170,000 mortgage. The transfer qualifies under Sec. 351. What is the corporation's basis in the property?
◦ $160,000
◦ $170,000
◦ $190,000
◦ $200,000

Question 2

Ron 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 the adjusted basis of the stock received?
◦ $0
◦ $30,000
◦ $60,000
◦ $70,000

14vl19 · **Reply #1 on:** Sep 13, 2020

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