Solution-What was Gearty basis in The Worthington Corp stock

What was Gearty basis in The Worthington Corp stock

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Reference no: EM132645614

Problem - Gearty and Olinto organized The Worthington Corp., which issued voting common stock with a fair market value of $240,000. They each transferred property in exchange for stock as follows:

	Property	Adjusted Basis	Fair Market Value	Percentage of The Worthington Corp. Stock Acquired
Gearty	Building	$80,000	$164,000	60%
Olinto	Land	10,000	96,000	40%

The building was subject to a $20,000 mortgage that was assumed by The Worthington Corp. What was Gearty's basis in The Worthington Corp. stock?

a. $164,000

b. $80,000

c. $60,000

d. $0

Reference no: EM132645614

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What was Gearty basis in The Worthington Corp stock

Reference no: EM132645614

Reference no: EM132645614

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