Marie performs personal services for the corporation

Reference no: EM131023111

Marie and Ethan form Roundtree Corporation with the transfer of the following. Marie performs personal services for the corporation with a fair market value of $193,200 in exchange for 400 shares of stock. Ethan contributes an installment note receivable (basis $25,000; fair market value $30,000), land (basis $50,000; fair market value $170,000) and inventory (basis $458,240; fair market value $572,800) in exchange for 1,600 shares.

If an amount is zero, enter "0". Marie has income of $______ and $_________ basis in her 400 shares of stock and Ethan has income of $________ and $_______ basis in his 1,600 shares of stock.Show work.

Reference no: EM131023111

Questions Cloud

Internal rate of return and net present value : The text book favors Internal rate of return and Net present value. Internal rate of return because this method does consider the time value of money and looks at the cash flows over the entire life of the project. Which method is MOST preferred (and..

A franchise exists when the owner of a copyright licenses : In raising capital, a sole proprietor is limited to his or her personal funds¾a personal loan is not possible.A. True, B. False

Decide how many pipe rolling machines to purchase : Managers at Midnight Manufacturing must decide how many pipe rolling machines to purchase. Each machine can process 100 pipes per hour. One machine will result in a fixed cost of $2,100 per hour, while two machines will result in a fixed cost of $3,7..

Competitors in the discount drug chain store business : Lenows Drug stores and Halls Pharmaceyticals are competitors in the discount drug chain store business. Complete the following given earnings before interest and taxes of 20,000,30,000 and 120,000. Assume the tax rate is 30%. Leave nothing blank but ..

Marie performs personal services for the corporation : Marie performs personal services for the corporation with a fair market value of $193,200 in exchange for 400 shares of stock.

Accounting standards are very complex and require expertise : Max Points: 5.0 Accounting standards are very complex and require expertise in their interpretation and application. Smaller companies often do not have the resources available to obtain this expertise, leading to the concept of "big GAAP" and "littl..

Your proceeds from sale of rights is : Prahm Corp. wants to raise $4.5 million via a rights offering. The company currently has 550,000 shares of common stock outstanding that sell for $80 per share. Its underwriter has set a subscription price of $40 per share and will charge the company..

Which method of controlling pledged inventory : Which method of controlling pledged inventory provides the greatest degree of security to the lender?

What was the interest expense for the year : The Cant Get More Fun Than This Company reported EBIT of $20 million and net income of $11 million. If the corporate tax rate is 35% for this company in this tax bracket, what was the interest expense for the year?

User Account

All Pages