Solution-What amount of gain or loss does Ramon realize on

What amount of gain or loss does Ramon realize on transfer

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Question - Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted bases:

	FMV	Adjusted Basis
Inventory	$30,000	$11,100
Building	67,750	36,750
Land	168,000	66,000
Total	$265,750	$113,850

The fair market value of the corporation's stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ramon.

Required -

a. What amount of gain or loss does Ramon realize on the transfer of the property to his corporation?

b. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation?

c. What is Ramon's basis in the stock he receives in his corporation?

Reference no: EM132449562

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What amount of gain or loss does Ramon realize on transfer

Reference no: EM132449562

Reference no: EM132449562

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