What are the tax consequences to nancy

Reference no: EM133412659

Question: Nancy, Guy, and Rod form Goldfinch Corporation with the following consideration.

Adjusted Basis	Fair Market Value
From Nancy-
Cash	$120,000	$120,000
Inventory	90,000	130,000

From Guy-
Land and building Mortgage taken for personal purpose on land	60,000 100,000	300,000 100,000

From Rod-
Legal and accounting services to incorporate	-0-	50,000

Goldfinch issues its 500 shares of stock as follows: 250 to Nancy, 200 to Guy, and 50 to Rod.

a. What are the tax consequences to Nancy, Guy, and Rod including basis in stock received?

b. What basis does Goldfinch Corporation have in the inventory? In the land and building?

Reference no: EM133412659

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