Reference no: EM132068083
Question - Ben, Max and Sam decide to form Brownell Corporation. On April 12, 2014, Ben contributes equipment with a FMV of $100,000 and a basis of $75,000 in exchange for 100 shares of Brownell Corporation. On May 29, 2014, Max contributes land with a FMV of $550,000 and a basis of $165,000 in exchange for 550 shares of Brownell Corporation. On June 3, 2014, Sam transfers property with a FMV of $350,000 and a basis of $125,000 for 350 shares of Brownell Corporation.
a. If the three exchanges are part of a prearranged plan, what gain or loss will Ben, Max and Sam recognize on the exchange?
b. If Sam's basis in the property transferred was $450,000 rather than $125,000 is there a better way to structure this transaction?
c. Assume that Ben and Max had exchanged their property for stock 3 years ago and Sam had exchanged her property for stock in the current year. Sam's transfer is not a part of a prearranged plan with Ben and Max to incorporate the business. What gain will Sam recognize on the transfer (using the original facts from the problem)?
|
How many payments will you have made
: You're prepared to make monthly payments of $300, beginning at the end of this month, into an account that pays 10 percent interest compounded monthly.
|
|
What are some of the factors that affect social mobility
: Do you believe the structural-functionalist or the social-conflict approach best explains social stratification? Why?
|
|
What are the net proceeds to the firm
: Raybac is about to go public. Its present stockholders own 460,000 shares. The new public issue will represent 880,000 shares.
|
|
Creation of an express trust
: The course includes the study of trusts - a complex area of the law. The creation of an express trust (i.e. one intended created and not arising by law or fact)
|
|
What gain or loss will ben max and sam recognize
: If the three exchanges are part of a prearranged plan, what gain or loss will Ben, Max and Sam recognize on the exchange
|
|
Analyze each persons components of culture
: What role has class, race, and gender played in their lives? How do you see these stratifiers as playing a role, even if the interviewee is unaware of it?
|
|
Can a bull spread or bear spread have zero initial premium
: A ratio spread can have a zero initial premium. Can a bull spread or bear spread have zero initial premium? Why or why not? Explain.
|
|
What is the geometric return for cherry jalopies
: The rate of return on Cherry Jalopies, Inc., stock over the last five years was 19 percent, 11 percent, -1 percent, 3 percent, and 12 percent.
|
|
Prepare business research on corruption in taxation
: BUS707 – Applied Business Research - king's own institute - identify relevant sub-problems, research questions, and provide a brief background to the research
|