John forms a corporation and transfers property having a

Reference no: EM13603767

John forms a corporation and transfers property having a basis to him of $18,000 and a fair market value of $26,000 to the corporation for 1,000 shares of $10 par stock. One year later, Hal transfers property having a basis to him of $2,500 and a fair market value of $3,500 for 100 shares of the stock. Hal is not related to John. The corporation issued no other stock.

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

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

Reference no: EM13603767

Questions Cloud

An object of unknown mass is attached to an ideal spring : an object of unknown mass is attached to an ideal spring with force constant 120 nm and is found to vibrate with a

Pam owns a sole proprietorship and kevin is the sole : pam owns a sole proprietorship and kevin is the sole shareholder of a c regular corporation. each business sustained a

Purchases of new equipment during the year 196000 were : an analysis of the income statement and the balance sheet accounts of headrick inc. at december 31 2009 provides the

Determine the point estimate of the population proportion : determine the point estimate of the population proportion the margin of error for the following confidence interval and

John forms a corporation and transfers property having a : john forms a corporation and transfers property having a basis to him of 18000 and a fair market value of 26000 to the

What is the power in megawatts mws of a three-loop pwr : what is the power in megawatts mws of a three-loop pwr with the following system parameters -each loop has a flow rate

Castner corporation is considering implementation of a jit : castner corporation is considering implementation of a jit inventory system.. the companys industrial engineer

The number of o-ring failures for the first 23 flights of : the number of o-ring failures for the first 23 flights of the us space shuttle challenger were0 1 0 na 0 0 0 0 0 1 1 1

They make a totally inelastic collision with the plate and : for lunch you and your friends decide to stop at the nearest deli and have a sandwich made fresh for you with 0.100 kg

User Account

All Pages