What is kanes basis in the griffin stock and? note

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Question: In the current? year, Joe?, Kane?, Lilly?, and Myron transfer the following property to Griffin Corporation? (an existing? corporation), which is owned equally by the four transferors.

Joe transfers land and a building with a $76,000 adjusted basis and a $128,000 FMV for additional Griffin stock having a $112,000 FMV and $16,000 of marketable securities having an adjusted basis of $14,000 in Griffin?'s hands. $34,000 of MACRS? straight-line depreciation on the building was claimed by Joe prior to the transfer.

• Kane transfers equipment with a $140,000 adjusted basis and a $128,000 FMV for additional Griffin stock having a $112,000 FMV and a $16,000 ?20-year Griffin note. $34,000 of MACRS depreciation on the equipment was claimed by Kane prior to the transfer.

• Lilly transfers inventory with a $74,000 adjusted basis and a $128,000 FMV for additional Griffin stock having a $112,000 FMV and $16,000 cash.

• Myron transfers land with a $22,000 adjusted basis and a $128,000 ?FMV, subject to a $35,000 ?mortgage, which Griffin ?assumes, for additional Griffin stock having a $93,000 FMV.

Requirements: a. What amount and character of gain or loss does Joe ?recognize? What is Joe?'s basis in the Griffin stock and the marketable? securities? What is Griffin?'s basis in the land and? building?

b. What amount and character of gain or loss does Kane ?recognize? What is Kane?'s basis in the Griffin stock and? note? What is Griffin?'s basis in the? equipment?

c. What amount and character of gain or loss does Lilly ?recognize? What is Lilly?'s basis in the Griffin ?stock? What is Griffin?'s basis in the? inventory?

d. What amount and character of gain or loss does Myron ?recognize? What is Myron?'s basis in the Griffin ?stock? What is Griffin?'s basis in the? land?

e. What amount and character of gain or loss does Griffin recognize on the distribution of its? stock, note, and other property to its? shareholders?

Reference no: EM132762882

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