What is dexter corporation tax basis for the property

Assignment Help Accounting Basics

Reference no: EM13131288

Alan, Baker and Crowe formed Dexter Corporation during 2011. Pursuant to the incorporation agreement, Alan transferred property with an adjusted basis of $30,000 and a fair market value of $45,000 for 450 shares of stock, Baker transferred cash of $35,000 in exchange for 350 shares of stock, and Crowe performed services valued at $25,000 in exchange for 250 shares of stock. Assuming the fair market value of Dexter Corporation stock is $100 per share, what is Dexter Corporation's tax basis for the property received from Alan?

a. $0
b. $30,000
c. $45,000
d. $65,000

Reference no: EM13131288

Questions Cloud

Expressing disagreement productively : Amber reacts to Tyrone's suggestion for promoting the upcoming concert by putting fliers on cars in the school parking lot by telling him, "That is so idiotic! People hate it when they get those stupid fliers on their cars!" She is not displaying..

Types of collection practices : The Fair Debt Collection Practices Act has four different types of collection practices. Explain who the legislation applies to and explain the four different collection methods.

Explain separation scheme for isolating benzoic acid : Separation scheme for isolating benzoic acid, Could you please show me a separation scheme for isolating benzoic acid from a reaction mixture if mixing a Grignard

An english essay, : an English essay, which is 1500 words in length, requires both primary an secondary texts

What is dexter corporation tax basis for the property : Alan, Baker and Crowe formed Dexter Corporation during 2011. Pursuant to the incorporation agreement, Alan transferred property with an adjusted basis of $30,000 and a fair market value of $45,000 for 450 shares of stock.

Very little money is spent in this world : Very little money is spent in this world without a proposal of some sort first laying out a project and then justifying why it is worth the cost. Whether you are obtaining funding for your work, suggesting changes where you work, selling a project, o..

Describe how and why interest expense is allocated : Describe how and why interest expense is allocated between measurement periods. As a business manager should you be concerned when notes payable are used in funding the operations of the business?

Audience presentation : Alisha is giving a speech about whales. During her presentation, she used many hand gestures often imitating the whale movements she is speaking about, spoke with several different vocal pitches, and she spoke from different places in the room. B..

Why stakeholders be unhappy : Your company's CEO has just learned that your firm's equity can be viewed as an option. Why might he want to increase the riskiness of the company, and why might other stakeholders be unhappy about this?

User Account

All Pages