Solution-How much gain does dave recognize on his exchange

How much gain does dave recognize on his exchange

Assignment Help Managerial Accounting

Reference no: EM13938852

Dave forms a corporation and transfers property having a basis to him of $22,000 and a fair market value of $29,000 to the corporation for 1,000 shares of $11 par stock. One year later, Hank transfers property having a basis to him of $3,500 and a fair market value of $4,500 for 100 shares of the stock. Hank is not related to Dave. The corporation issued no other stock.

(a) How much gain does Dave recognize on his exchange? What is the basis to Dave of his 1,000 shares?

(b) What gain or loss is recognized by the corporation when it issues its shares to Dave? What is the basis to the corporation of the property it received from Dave?

Reference no: EM13938852

Questions Cloud

For each of your issues, provide an example : For each of your issues, provide an example of a company or industry where these issues could be present.

Demonstrate understanding of the central issue of debate : demonstrate an understanding of various points of view within the debate

What is the key for table t : Please indicate which record can be added into table T without violating any of the functional dependencies in F. If the record or row cannot be legally added, please indicate which functional dependency is violated.

Negotiating a contract with your employer : What is the present value of a $200 perpetuity if the interest rate is 7%? If interest rates doubled to 14%, what would its present value be?

How much gain does dave recognize on his exchange : How much gain does Dave recognize on his exchange? What is the basis to Dave of his 1,000 shares?

Determine the cost of the digital imaging machine : Determine the cost of the digital imaging machine. Explain why you included or excluded the $160 bracket replacement cost.

What surgical procedure will be performed : Mrs. Oberhaus needs surgery to correct a severe case of Raynaud's disease, affecting one of her hands. What surgical procedure will be performed? After the surgery, will she more likely to suffer from anhidrosis (lack of sweating) or hyperhidrosis..

Company on case study-vodafone group : Your guiding question is "how to operate successfully in an international environment?" The first part will be a case study focusing on a strategic problem, for example, (1) "why go further? where are you going to locate your manufacture plant?"

Determine the cost of the land and the building : Mooney Sounds, a local stereo retailer, needed a new store because it had outgrown the leased space it had used for several years. Determine the cost of the land and the building.

User Account

All Pages

How much gain does dave recognize on his exchange

Reference no: EM13938852

Reference no: EM13938852

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT