User Account

All Pages

Is gain or loss recognized on any of the transfers

Assignment Help Financial Accounting
Reference no: EM13971522

Mr. Green and Mr. Brown form a corporation to carry on a new business. In exchange for $175,000 worth of the new corporation's stock, Green transferred to the corporation $25,000 in cash and Properties A and B. Property A had a value of $75,000 and a basis of $50,000; Property B had a value of $100,000 and a basis of $75,000 and was subject to a $25,000 mortgage. In exchange for $50,000 worth of the new corporation's stock, Mr. Brown transferred to the corporation $25,000 in cash and Property C. Property C had a value of $175,000, a basis of $100,000 and was subject to a $150,000 mortgage.

a) Is gain or loss recognized on any of the transfers?

b) Determine the basis of each shareholder's stock in the new corporation.

c) Determine the basis of each property in the hands of the corporation. 

Reference no: EM13971522

Questions Cloud

Indicate whether the following costs of procter and gamble : Indicate whether the following costs of Procter & Gamble, a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost:
Evaluating the anticipated change in practice : As discussed, dissemination of research findings is necessary to continue to grow the knowledge base and support nurses learning from each other. Describes your strategy for evaluating the anticipated change in practice
Dividends and costs of common equity : Suppose Dysfunctional Inc. has the following (variable) dividends and costs of common equity for the next five years.
How do you find the mass percent of oh- in an unknown : How do you find the mass percent of OH- in an unknown sample of antacid size of 0.2274 g titrated with a 0.1M NaOH solution, endpoint being 29.5 mL. Not sure if relevant but 50mL of 0.1 HCl was added before titration. Show work with explanation pleas..
Is gain or loss recognized on any of the transfers : Determine the basis of each shareholder's stock in the new corporation. Is gain or loss recognized on any of the transfers?
Can hepworth buy the equipment using this years operating : CONCEPTUAL CONNECTION Hepworth has an opportunity to buy some equipment that will significantly increase productivity. The equipment costs $25,000. Assuming exactly the same data used for Requirement 1, can Hepworth buy the equipment using this year'..
Explain why this choice is correct : SH (pH 2) ; 50/50 SH/S:- (pH 8) SH (pH 2) ; S:- (pH 8) S:- (pH 2) ; SH (pH 8)
Prepare a monthly flexible budget for each increment of sale : Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2017.
Compare the relative effectiveness of monetary : Compare the relative effectiveness of monetary and fiscal policy in the two situations.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Evaluate the amount of the controllable overhead variance

Evaluate the amount of the controllable overhead variance and the overhead applied.

  What are the ethical considerations that kravetz faces

What are the ethical considerations that Kravetz faces in answering the auditors question? How should she respond to the question.

  Square footage requirements and effective utilization

Square footage requirements and effective utilization - If you're new strip mall will have 15,000 square feet of retail space available to be leased, to which businesses should you lease and why?

  Business combinations provides principles for allocating

business combinations provides principles for allocating the fair value of a acquired business. when the collective

  Gross income is some interest he earns from savings account

Toni claims her father as a dependent. The father is 80 years old. The father’s only source of gross income is some interest he earns from a savings account. The father’s gross income threshold for purposes of having to file a tax return for 2014 is ..

  What are the individual products at the split-off point

Allocating joint costs and costs of byproducts allows managers to examine cost and profitability associated with each of the products they produce enabling them to establish goals related to product-mix. Your discussion topic this week focuses on joi..

  Advanced thermal ltd is proposing the construction of a new

advanced thermal ltd is proposing the construction of a new plant in thailand. it has recently completed a 100000

  Financial statements and key ratios

Excerpts from Dowling Company's December 31, 2016 and 2015, financial statements and key ratios are presented below (all dollar values are in millions):

  First financial auto loan department

First Financial Auto Loan Department wishes to know the payment required at the first of each month on a $10,500, 48-month, 11% auto loan. To determine this amount, First Financial would

  Management issues affected by instability of social security

As a benefits manager, how might the potential demise of Social Security affect the decisions you make regarding other benefits that you have the option of providing to your employees? How might it affect your company's human resource planning proces..

  Characterizing managerial accounting

Which of the following is a FALSE statement characterizing managerial accounting.

  What is the essence of the discounted cash flow methods

Capital budgeting has the same focus as accrual accounting.” Do you agree or disagree? Explain. Give a brief description of what capital budgeting is. What is the essence of the discounted cash flow methods?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd