(3) Adams incorporates her sole proprietorship by transferring the following assets to Newco: Machinery & Equip. Land Building Accounts Receivable Basis $50,000 $10,000 $60,000 $40,000 FMV $60,000 $50,000 $50,000 $40,000 Adams receives 100% of Newco's stock together with a Newco note maturing in 3 years in the amount of $80,000. What are the tax consequences of this transfer to Adams?
(3) Adams incorporates her sole proprietorship by transferring the following assets to Newco: Machinery & Equip. Land Building Accounts Receivable Basis $50,000 $10,000 $60,000 $40,000 FMV $60,000 $50,000 $50,000 $40,000 Adams receives 100% of Newco's stock together with a Newco note maturing in 3 years in the amount of $80,000. What are the tax consequences of this transfer to Adams?
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Transcribed Image Text:(3) Adams incorporates her sole proprietorship by transferring the following assets to Newco:
Machinery & Equip.
Land
Building
Accounts Receivable
Basis
$50,000
$10,000
$60,000
$40,000
FMV
$60,000
$50,000
$50,000
$40,000
Adams receives 100% of Newco's stock together with a Newco note maturing in 3 years in
the amount of $80,000. What are the tax consequences of this transfer to Adams?
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