Solution-Question - Corporate Formations Problem

Question - Corporate Formations Problem

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Reference no: EM132670155

Question - Corporate Formations Problem

Mary and Todd form the MT Corporation, with a transfer of the following properties:

Mary $1,200,000 cash

Todd $800,000 FMV property

$300,000 tax basis

Mary will receive 60% and Todd 40% of the corporate stock.

Complete the following -

	Mary	Todd
Realized gain
Recognized gain
Basis of Stock
MT basis in contributed asset

VARIATION 1: return to original facts (no Karla). Todd's property is valued at $1,100,000 but is contributed subject to a $300,000 liability.

Complete the following -

	Mary	Todd
Realized gain
Recognized gain
Basis of Stock
MT basis in contributed asset

VARIATION 2: Same as Variation 1 except Todd's property is valued at $1,200,000 and is contributed subject to a liability of $400,000.

Reference no: EM132670155

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Question - Corporate Formations Problem

Reference no: EM132670155

Reference no: EM132670155

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