What is ted basis in the stock

Reference no: EM13265844

Introduction: Ted decides to incorporate his medical practice. He uses the cash method All the current liabilities will be deductible by Ted if he pays them. All the current liabilities would be deductible by Ted if he paid them. Ted transfers all assets and liabilities to a professional corporation in exchange for all of its stock.

A) What are the amount and character of Ted's recognized gain or loss?

B) What is Ted's basis in the stock?

C) What is the corporation's basis in the property?

D) Who recognized income on the receivables upon their collection? Can the corporation obtain a deduction for the liabilities when it pays them?

Cash	$5,000	$5,000
A/R	$0	$65,000
Equip. (net of $15,000 depreciation)	$35,000	$40,000
Total	$40,000	$110,000
Liabilites and Owner's Equity
Current liabilities	$0	$35,000
Note payable on equip.	$15,000	$15,000
Owner's equity	$25,000	$60,000
Total	$40,000	$110,000

Reference no: EM13265844

Questions Cloud

Determine the voltage range that would be converted to pcm : For a 12-bit linear PCM code with a resolution of 0.02 V, determine the voltage range that would be converted to the following PCM codes. (a) 1 0 0 0 0 0 0 0 0 0 0 1 (b) 0 0 0 0 0 0 0 0 0 0 0 0

What is the speed of the exploration vehicle : A spacecraft approaching the earth launches an exploration vehicle. What is the speed of the exploration vehicle relative to the spaceship

Draw wschematic of design specifying the value of resistance : assume filter is connected to a pure resistive load. The cutoff frequency is not to drop below 25krad/s. What is the smallest load resistor that can be connected across the output terminals of the filter.

Does the sampling method fit the research design : Is the target population carefully described, are sample selection procedures clearly defined and does the sampling method fit the research design?

What is ted basis in the stock : Who recognized income on the receivables upon their collection? Can the corporation obtain a deduction for the liabilities when it pays them?

Determine the final angular speed of the merry-go-round : a rotating merry-go-round is essentially a disk with mass of 250 kg an radius of 2.5m, Determine the final angular speed of the merry-go-round/son combination

What is the coding efficiency of a pcm code : Determine the minimum number of bits required in a PCM code for a dynamic range of 80 dB. What is the coding efficiency

What is the expected return on the portfolio : You own a portfolio that is 40 percent invested in Stock X, 25 percent in Stock Y, and 35 percent in Stock Z. The expected returns on these three stocks are 11 percent, 20 percent, and 16 percent, respectively. What is the expected return on the p..

Calculate the power developed at full load by the armature : A six pole, 40 kW, 400 V d.c. motor draws 110 A from the supply. The shunt field resistance is 200 Ohm and the armature resistance is 0.5 Ohm. The armature is wave wound with 600 conductors operates at a speed of 1200 rev/min when supplying full l..

User Account

All Pages