Solution-What is the adjusted basis of the assets with

What is the adjusted basis of the assets with respect to HMI

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Reference no: EM132780092

Problem - Trisha transfers the following assets to HMI Corp. in exchange for 100% of its stock.

Asset	Fair Market Value	Adjusted Basis
Inventory	$800,000	$750,000
Equipment	$550,000	$700,000
Computer	$280,000	$400,000
Tractor	$300,000	$280,000

Assume there are no special elections made by either Trisha or HMI Corp.

Required -

1. What is the adjusted basis of the assets with respect to HMI Corp.?

2. What are the tax consequences to Trisha (gain/loss recognized, basis of stock received)?

Reference no: EM132780092

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What is the adjusted basis of the assets with respect to HMI

Reference no: EM132780092

Reference no: EM132780092

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