Solution-What was the Worthington Corp basis in the building

What was the Worthington Corp basis in the building

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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 the Worthington Corp.'s basis in the building?

a. $60,000

b. $80,000

c. $144,000

d. $104,000

Reference no: EM132645589

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What was the Worthington Corp basis in the building

Reference no: EM132645589

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