What will be the basis of stock received by each shareholder

Assignment Help Financial Accounting

Reference no: EM131259667

The point here is to be able use sec 351, 1031 and calculate corporation basis and shareholder basis. I have my own calculation, but i just want to comapre with your's!

Mr. X, Y, and Z organize the Alpha Corporation as a result of the following transfers:

Property Transferred FMV Stock Boot

Received

ADJ Basis

Mr. X Machinery 30,000 60,000 -0-

Cash 20,000

Mr. Y Building 80,000 60,000 -0-

Mortgage 100,000

Mr. Z Furniture 70,000 60,000 30,000

What is the recognized gain or loss to Mr. X, Y, and Z?

What will be the basis of the stock received by each shareholder?

What basis will Alpha Corp. have in the property acquired from each shareholder?

Reference no: EM131259667

Questions Cloud

How art can aesthetically pleasing even if it is beautiful : Explain how art can be "aesthetically pleasing" even if it isn't beautiful? How did viewers of the selected work of art respond to the work at the time it was created?

Annual production and sales capacity : The Claire Corporation sells only one product. The following is budgeted information for that product: How many units does Samantha need to sell to breakeven? How much revenue does Samantha need to generate to breakeven? How many units does Samantha ..

The arguments for prorating a production-volume variance : What are the arguments for prorating a production-volume variance that has been deemed to be material among work-in-process, finished goods, cost and cost of goods sold as opposed to writing it all off to cost of goods sold?

Cost of production plus its selling and administrative costs : Division A’s cost accounting records show that the cost of its product is $151 per unit—$103 in variable costs and $48 in fixed costs. The market price of the product, $168, barely covers Division A’s cost of production plus its selling and administr..

What will be the basis of stock received by each shareholder : The point here is to be able use sec 351, 1031 and calculate corporation basis and shareholder basis. What is the recognized gain or loss to Mr. X, Y, and Z? What will be the basis of the stock received by each shareholder? What basis will Alpha Corp..

Find k and find the depth of the surface : Find k (to five decimal places), and find the depth (to the nearest foot) at which 1% of the surface light remains

What does safety stock provide safety against : The calculated EOQ is wrong; actual demand is 10% greater than estimated ? What is "safety stock"? What does safety stock provide safety against?

Determine key roles that human resource management plays : Evaluate three to five (3-5) functions of human resource management in terms of their level of support to the health care field, and then select which one you believe is the primary function in furthering the health care field.

How are inventory levels monitored in retail stores : When demand is not constant, the reorder point is a function of what four parameters? - How are inventory levels monitored in retail stores?

User Account

All Pages