What gain or loss is recognized by the corporation

Assignment Help Accounting Basics
Reference no: EM131929459

Question - Kyle forms a corporation and transfers property having a basis to him of $20,000 and a fair market value of $30,000 to the corporation for 1,000 shares of $9 par stock. One year later, Bob transfers property having a basis to him of 8. (TCO B) Kyle forms a corporation and transfers property having a basis to him of $20,000 and a fair market value of $30,000 to the corporation for 1,000 shares of $9 par stock. One year later, Bob transfers property having a basis to him of $2,000 and a fair market value of $4,000 for 100 shares of the stock. Bob is not related to Kyle. The corporation issued no other stock.

(a) How much gain does Kyle recognize on his exchange? What is the basis to Kyle of his 1,000 shares?

(b) How much gain does Bob recognize on his exchange? What is the basis to Bob of his 100 shares?

(c) What gain or loss is recognized by the corporation when it issues its shares to Kyle? What is the basis to the corporation of the property it received from Kyle?

Reference no: EM131929459

Questions Cloud

Population proportion of employed individuals : Construct a? 99% confidence interval for the population proportion of employed individuals who work at home at least once per week.
Describe plans for conducting an environmental scan : Describe plans for conducting an environmental scan. The environmental scan is a process in which stakeholders gather and interpret relevant data on an agency.
Confidence interval for the mean number of books people : Construct a 99?% confidence interval for the mean number of books people read. Interpret the interval.
What you believe cp attempts to provide for an organization : Describe what you believe is the most important CP consideration for an organization. Provide a rationale for your answer.
What gain or loss is recognized by the corporation : What gain or loss is recognized by the corporation when it issues its shares to Kyle? What is the basis to the corporation of the property it received from Kyle
Define absolute and comparative advantage : Define absolute and comparative advantage. Compare the two views on trade. How does the concept of opportunity cost factor into comparative advantage?
Calculate that the degree of operating leverage : At an output level of 78,000 units, you calculate that the degree of operating leverage is 3.80.
What is the sample of study : In a survey conducted by the marketing agency 11Mark, 241 of 1000 adults 19 years or age or older confessed to bringing and using their cell phone every
What tax issues should sheryl consider : On January 12 of the current year, Barney Corporation, a publicly held corporation, filed for bankruptcy. What tax issues should Sheryl consider

Reviews

Write a Review

Accounting Basics Questions & Answers

  Lady gaga enterprises on july 15 sells merchandise on

lady gaga enterprises on july 15 sells merchandise on account to usher iv co. for 1000 terms 210 n30. on july 20 usher

  Why is the statement of cash flows useful

Identify five items that are adjustments to convert net income to net cash provided by operating activities under the indirect method.

  Why would christians in the west be moved to embark

Why would Christians in the West be moved to embark on a dangerous journey to fight in the Holy Land after hearing Pope Urban's speech at Clermont?

  Discuss the april cost of goods sold using the fifo method

Compute the April 30 inventory and the April cost of goods sold using the FIFO method

  Describe the objective of external auditing

Describe the objective of external auditing and describe its role in meeting society's demand for reliable financial and internal control information

  Compute average revenues per store

Use the preceding data for MRS to compute average revenues per store, capital spending per new store, and ending inventory per store in 2014.

  Today the common stock of gresham technology closed at 2460

today the common stock of gresham technology closed at 24.60 per share down 0.35 from yesterday. if the company has 4.6

  Data in the table.

Which company is which? Explain how you identified each company from the data in the table.

  What is the cited source of the information

What does a Chief Financial Officer do? For what is he or she responsible? This activity will help you to appreciate the role of the Chief Financial Officer.

  For the year ending december 31 2010 nathan clinical

for the year ending december 31 2010 nathan clinical supplies co. mistakenly omitted adjusting entries for 1 8900 of

  What is your firm tax expense

HI5020 Corporate Accounting Assessment. What is your firm's tax expense in its latest financial statements. Comment on deferred tax assets/liabilities

  Swindall industries uses straight-line depreciation on all

swindall industries uses straight-line depreciation on all of its depreciable assets. the company records annual

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd