What is kanes basis in the griffin stock and? note

Assignment Help Accounting Basics
Reference no: EM132762882

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

Questions Cloud

For what reason would you question validity of these data : The chief financial analyst reported the following current monthly data for the Rocket Man: For what reason would you question validity of these data
What net cash provided by financing activities was : In Beal's 20X10 statement of cash flows, net cash provided by financing activities was? The short-term investments were classified as securities available
Determine the speed of the ball : A photogate measurement determines that the cannon recoiled backwards with a speed of 6 m/s. Determine the speed of the ball.
What is the margin of safety expressed in dollars : If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, what is the margin of safety expressed in dollars
What is kanes basis in the griffin stock and? note : 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
Make a production budget showing the quantity of units to be : Make a production budget showing the quantity of units to be produced each month for January, February, March, and in total for the quarter.
What is the force on the brake pad : If a force of 6.6 lb is applied to this piston, what is the force on the brake pad of one wheel if the area of the pad is 1.9 square inches?
Compute the break-even number of seats sold : Compute the break-even number of seats sold on a single round-trip flight for the overall enterprise product, E
Determine what is future value of the investment cash flows : Gary King has an investment that will pay him the following cash flows over, what is the future value of the investment's cash flows at the end of five years?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Custom publishers company specializes in print-on-demand

custom publishers company specializes in print-on-demand books. the company needs information to budget next years

  For the last nine years mr and mrs orchard live in a

for the last nine years mr. and mrs. orchard live in a residence located on eight acres. in january of the current year

  Prepare a statement of cash flows using the indirect method

Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of the country

  Shannon inc has been manufacturing its own shades for

shannon inc has been manufacturing its own shades for itstable lamps. the company is currently operating at 100

  Necessary journal entry for conversion-retirement of bond

Prepare the necessary journal entry for the conversion and retirement of the bonds.

  Heathrow issues 1600000 of 9 15-year bonds dated january 1

heathrow issues 1600000 of 9 15-year bonds dated january 1 2011 that pay interest semiannually on june 30 and december

  How are the financial statements affected

If both leases are classified as operating leases, what is the ethical issue at stake? How are the financial statements affected under the above scenario

  Calculate the cost of scrap on one of the product lines

From the following list identify which activities are concerned mainly with cost and management accounting and which are concerned with financial accounting.

  Determine the cost of goods sold using the FIFO method

Causwell Company began 2021 with 23,000 units of inventory on hand. Determine the cost of goods sold for 2021 using the FIFO method

  Leo purchased and placed in service a new car

On February 15, 2013, Leo purchased and placed in service a new car that cost $23,750. The business use percentage for the car is always 100%. He does take the additional first-year depreciation.

  Company a sets price equal to cost plus 60 recently

company a sets price equal to cost plus 60. recently company a charged a customer a price of 42 for an item. what was

  Computing-journalizing payroll transactions

Record the payroll for the two employees at December 31 and record the employer's share of payroll tax expense for the December 31 payroll. Two journal entries required.

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