Contribution of the property to newly organized corporation

Assignment Help Financial Accounting

Reference no: EM13776927

Michelle owns appreciated property and she wants to use this property to start a business with her son, Lance. Michelle is considering making a contribution of the property to a newly organized corporation in exchange for 100 percent of the corporate stock. She then contemplates giving half of the stock to Lance in exchange for his promise to manage the business. Do you think this transaction will qualify for 351 treatments? Suppose that Michelle promises that she won't transfer the stock for a month after making the contribution of property. Any difference? Compare Rev. Rul. 54-96, 1954-1 CB 111 and Intermountain Lumber Co., 65 TC 1025 (1976).

Reference no: EM13776927

Questions Cloud

Implementation of customer relationship : Closing case study two- 1. How are Principal's efforts an excellent example of the implementation of customerrelationship management? In what ways has Principles developed significant knowledge and insight into the wants and needs of its customers?

Prepare the required journal entries for gator : On October 1, 2014, Gator Inc assigns $1,600,000 of its accounts receivable to American Bank as collateral for a $1,200,000 loan. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 7%.

The style rule below gives a monochrome colour scheme : The style rule below gives a monochrome colour scheme? body{ background-color: hsl(0,50%,75%); color: hsl{1,50%,25%);} a)true b)false 16. In class, we saw dark blue is specified by #000055, Suppose Css4 will offer colour specification using a base-12..

Baird inc. company produces two different components : Baird Inc. Company produces two different components (A and B) for a major manufacturer. The manufacturer notifies the Baird sales office each quarter of its monthly requirements for components for each of the next three months. The monthly requireme..

Contribution of the property to newly organized corporation : Michelle owns appreciated property and she wants to use this property to start a business with her son, Lance. Michelle is considering making a contribution of the property to a newly organized corporation in exchange for 100 percent of the corporate..

Prepare companys statement of cash flows for year ended : Jelly Bean, Inc., began 2012 with cash of $53,000. During the year Jelly Bean earned revenue of $597,000 and collected $621,000 from customers. Expenses for the year totaled $437,000, of which Jelly Bean paid $427,000 in cash to suppliers and employe..

Benefit discriminates in favor of key employees : Cydnee is 42 years old. Her employer provides her with $300,000 of group term life insurance as a fringe benefit. The policy costs her employer $40 per month. For tax purposes, how much income does Cydnee have if: The benefit discriminates in favor o..

Final research issue and research plan : Related to the one you just respond- Final Research Issue and Research Plan In Unit 1, you submitted three potential legal research project questions, and received feedback from your instructor to help you narrow down which question to select for you..

User Account

All Pages