Compute gain-mickey must recognize as result of transaction

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Reference no: EM131208681

Mickey, Ray, and Debra decide to create UNA Corporation to manufacture and sell fireplaces. Mickey and Ray contribute the following assets to the corporation on January 1, 2016: Individual Property Adjusted Basis Fair Market Value Mickey Equipment $30,000 $50,000 Ray Land $25,000 $65,000 The property contributed by Mickey has a $40,000 liability attached to it that UNA assumes. Mickey had used this equipment in another business for the last 3 years. The land owned by Ray was held as investment for 8 months before he contributed it to UNA. Mickey and Ray receive 15% and 65%, respectively, of UNA's common stock. Debra contributed services to UNA during January 2016 valued at $20,000 in return for 20% of UNA's common stock. She received her stock on January 1, 2016. Compute the gain that Mickey must recognize as a result of this transaction and the basis in his stock. A1 lock copy cut paste A B C 1 Shareholder Gain Basis in Stock 2 Mickey

Reference no: EM131208681

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