5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock. B transfersa tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock. What are the taxconsequences to all of the parties?(b) Suppose that in addition to transferring the services contract, A transfers cash of 20. A still receives 5096of the stock. How would this change your answer?() Suppose instead that in addition to transferring the services contract, A transfers cash of just 1 Howwould this change your answer?

Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock B transfers a tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock. What are the tax consequences to all of the parties? (b) Suppose that in adition to transferring the services contract, A transfers cash of 20. A still receives 50% of the stock. How would this change your answer? (C) Suppose instead that in addition to transferring the services contract, A transfers cash of just 1. How would this change your answer?

5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock B transfers a tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock. What are the tax consequences to all of the parties? (b) Suppose that in adition to transferring the services contract, A transfers cash of 20. A still receives 50% of the stock. How would this change your answer? (C) Suppose instead that in addition to transferring the services contract, A transfers cash of just 1. How would this change your answer?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 19P

See similar textbooks