What are the tax consequences of the incorporation to david

Assignment Help Accounting Basics

Reference no: EM13120494

David organize white Corporation with a transfer of land (basis of $200,00, fair market value of $600,000) that is subject to a mortgage of $150,000. A month before the incorporation, David borrowed $100,000 for personal purpose and gave the bank a lien on the land. White corporation issues stock worth $350,000 to David and assumes the mortgage of $150,000 and the personal loan of $100,000. What are the tax consequences of the incorporation to David and to white corporation? Solve the problem.

Reference no: EM13120494

Questions Cloud

What is the ph of the solution : A solution is prepared by mixing 250 mL of 1.00 M CH3COOH with 500 mL of 1.00 M NaCH3COO.

Find the cost of goods sold and the cost of ending inventory : A new textbook is published in the spring of 2011. Your campus bookstore buys 400 copies at $70 each in June, an additional 1,000 copies in August at $72 each, and 600 copies in December at $75 each. At the end of December 2011, the bookstore has ..

What is the probability that a seven digit phone number : Finding the probability repeats in finite sequences. What is the probability that out of 3 people, 2 were born in the same month.

Calculate total you will pay in income and social security : Assuming that you are single and receive no deduction or any other credits, Mr. Wilson has asked you to calculate the total you will pay in income, Social Security, and Medicare taxes for a salary of $94,000.

What are the tax consequences of the incorporation to david : David organize white Corporation with a transfer of land (basis of $200,00, fair market value of $600,000) that is subject to a mortgage of $150,000. A month before the incorporation, David borrowed $100,000 for personal purpose and gave the bank ..

How many moles of co2 must be added to the system : The system CO2(g) + H2(g) *) H2O(g) + CO(g) is at equilibrium at some temperature. At equilibrium a 4.00 L vessel contains 1.00 mole CO2, 1.00 mole H2, 2.40 moles H2O, and 2.40 moles CO.

Proquest, ebsco, and the lexisnexis : write an essay using any the three article databases from Proquest, Ebsco, and the LexisNexis. Research an area about "Situation on Korean peninsula"). Essay does not include the writer's feelings or opinions, but simply informs the reader about arti..

Deciding with discrete distribution to use : Discrete Distributions : Bernoulli, Binomial, Discrete Uniform, Geometric Negative Binomial or Poisson, My main problem is deciding with discrete distribution to use: BERNOULLI, BINOMIAL, DISCRETE UNIFORM, GEOMETRIC NEGATIVE BINOMIAL, OR POISSON.

Cost-revenue and profit functions : Suppose a small bicycle manufacturer makes cheap bikes that sell for 180$ each. The total cost of producing x bikes (in $) is given by c(x)=6000+240x-0.8x^2, where x is up to 200 bikes.

User Account

All Pages