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What is Tom basis in the stock of the Corporation

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Question - Tom creates a C Corporation on 1/1/20 in exchange for 100% of common stock of the Corporation and brings technical equipment to the Corporation.

Details of the equipment are as follows:

Original cost of the equipment $50,000

Accumulated depreciation on 1/1/20 $30,000

Fair Market Value of the equipment $25,000

a. What is Tom basis in the stock of the Corporation?

b. What is the basis of the equipment in the books of the Corporation?

Reference no: EM132524058

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