Solution-What are the tax consequences to Bill, Charlie,

What are the tax consequences to Bill, Charlie, and Tom Co

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Question - Bill decided to incorporate his printing business and to give his manager, Charlie, a share in the business. Bill's sole proprietorship transferred the following to Tom Co.:

	Basis	Value
Accounts payable	$0	$7,000
Accounts receivable	0	8,000
Printing press	6,000	10,000
Truck	24,000	20,000
Cash	2,000	2,000

Bill received 70 shares of the stock, worth $29,000. Charlie invested $2,000 in cash and received the remaining 30 shares of the stock.

Required - What are the tax consequences to Bill, Charlie, and Tom Co.?

Reference no: EM132893858

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What are the tax consequences to Bill, Charlie, and Tom Co

Reference no: EM132893858

Reference no: EM132893858

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