What is the corporation treatment of the equipment

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Q1) A shareholder contributes equipment to an S corporation in return for stock. The equipment was purchased one year ago for $180,000 and as $18,000 of straight-line depreciation accumulated. The fair market value of the equipment at the time of the exchange was $156,000. What is the corporation's treatment of the equipment?

Q2) A taxpayer's share of s corporation income is $17,000, and the taxpayer had distributions of $12,000. How much will the taxpayer include in this year's income tax filing?

Reference no: EM131590083

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