Reference no: EM131211112
An individual transfer property with an adjusted basis of $32,000 and a $45,000 FMV in exchange for 80 shares of stock of a newly formed corporation. A second individual is able to donate legal services in exchange for the remaining 20 shares of corporation stock, valued at $15,000.
What is the control and gain for both individuals?
>The first individual controls 80% of the corporation and is able to defer a gain of $32,000. The second individual controls 20% of the corporation and is able to defer a gain of $15,000.
>The first individual controls 80% of the corporation and is able to defer a gain of $45,000.The second individual controls 20% of the corporation and realizes $0 gain, but does recognize $15,000 in ordinary income.
>The first individual controls 80% of the corporation and recognizes a gain of $13,000. The second individual controls 20% of the corporation and realizes a $15,000 gain.
>The first individual controls 80% of the corporation and is able to defer a gain of $13,000. The second individual controls 20% of the corporation and realizes $0 gain, but does recognize $15,000 in ordinary income.
An individual transfer property with an adjusted basis of $10,000 and a $13,000 FMV in exchange for 50 shares of stock of a newly formed corporation. The property transferred has a mortgage of $5,000, also assumed by the corporation. Individual B contributes $10,000 in cash in exchange of 50 shares of the stock of the corporation. This transaction meets the requirements of section 351.
What reflects how the transferred liability is handled by the transferee and the transferor?
>Individual A's amount realized from the transfer is decreased due to the liability transfer, but her realized gain of $2000 is recognized as it is considered to be boot.
>Individual A's amount realized from the transfer is increased due to the liability transfer, but her realized gain of $2000 is recognized as it is considered to be boot.
>Individual A's amount realized from the transfer is decreased due to the liability transfer, but her realized gain of $5000 is not recognized as it is not considered to be boot.
>Individual A's amount realized from the transfer is increased due to the liability transfer, but her realized gain of $5000 is not recognized as it is not considered to be boot.
A company has $70,000 of regular taxable income and $100,000 of alternative minimum tax (AMT) preference items. The firm also has $105,000 of positive AMT adjustment items and $70,000 of negative AMT adjustment items. The company's regular tax liability $238,000. What is the firm's AMT?
>$71,000
>$167,000
>$0
>$27,000
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What is the control and gain for both individuals
: An individual transfer property with an adjusted basis of $32,000 and a $45,000 FMV in exchange for 80 shares of stock of a newly formed corporation. A second individual is able to donate legal services in exchange for the remaining 20 shares of corp..
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