A transfers land to Newco in exchange for 100% of Newco's stock. The land has a basis of $50, FMV of $100 and is subject to a mortgage of $40. A) What are the consequences to each of the parties?
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- 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 addition to transferring the services contract, A transfers cash of 20. A still receives 50% of the stock. 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 addition to transferring the services contract, A transfers cash of 20. A still receives 5096 of the stock. How would this change your answer? () Suppose instead that in addition to transferring the services contract, A transfers cash of just 1 How would this change your answer?Jocelyn contributes land with a basis of $39,500 and fair market value of $59,250 and inventory with a basis of $19,600 and fair market value of $29,400 in exchange for 100% of Zion Corporation stock. The land is subject to a $9,875 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange ________? tax-free under § 351 because the release of a liability________? treated as boot under§ 357(a). As a result, Jocelyn has income of $fill in the blank _____? and a basis $fill in the blank 4______? in her stock.
- Exercise 4-21 (Algorithmic) (LO. 1, 2, 3) Jocelyn contributes land with a basis of $48,500 and fair market value of $72,750 and inventory with a basis of $21,400 and fair market value of $32,100 in exchange for 100% of Zion Corporation stock. The land is subject to a $12,125 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange § 357(a). As a result, Jocelyn has income of $ tax-free under § 351 because the release of a liability and a basis $ in her stock. treated as boot underJocelyn contributes land with a basis of $56,000 and fair market value of $84,000 and inventory with a basis of $19,000 and fair market value of $28,500 in exchange for 100% of Zion Corporation stock. The land is subject to a $14,000 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange l § 357(a). As a result, Jocelyn has income of $ tax-free under § 351 because the release of a liability and a basis $ treated as boot under in her stock.(CO C) Suzanne transfers a building with an adjusted basis of $60,000 and a fair market value of $120,000 to ABC Company in return for 100% of its stock. The building is subject to a $90,000 mortgage, which ABC Company assumes. Please calculate the amount of any gain that Suzanne will need to report. Please also calculate Suzanne's basis in the stock
- calculate the recognized gain or loss to the seller and the adjusted basis to the buyer kiera sells parchment inc stock (adjusted basis $17,000) to phillip heer brother for its fair market value of $12,000?60. In pacto de retro sale or sale with a right to repurchase of an immovable property, what is the default period of redemption by the pacto de retro seller if the redemption period is not stated in the contract of pacto de retro sale? Group of answer choices a. 30 days b. 4 years c. 10 years d. 5 yearsLogan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $95,500) is worth $114,600 and Johnathan's land has a fair market value of $90,725, Johnathan also gives Logan cash of $23,875. a. Logan's recognized gain is $____________ . b. Assume that Johnathan's land is worth $103,140 and he gives Logan $11,460 cash. Logan's recognized gain is $___________
- Reese and Jake engage in a like-kind exchange. Reese transfers real estate with a fair market value of $500,000 and an adjusted basis of $200,000 to Jake. Jake transfers real estate worth $700,000 and an adjusted basis of $250,000, plus a $200,000 mortgage on the property, to Reese. What is Jake's potential or deferred gain before and after the transaction? $450,000 potential gain before the transaction; $50,000 potential gain after the transaction. $250,000 potential gain before the transaction; $50,000 potential gain after the transaction. $450,000 potential gain before the transaction; $250,000 potential gain after the transaction. $250,000 potential gain before the transaction; $200,000 potential gain after the transaction. Income TaxThe sale with right to repurchase the property will be presumed equitable mortgage, when? a. When the price of a sale with right to repurchase is unusually inadequate b. When the vendee binds himself to pay the taxes on the thing sold c. When the vendee took over the property d. When the vendor does not want to deliver the property.Required: Record the admission of Sonny (and asset revaluation, if any) for each of the following independent situation: 1. Sonny invests P279,000 for half of Patrick's capital. The money goes to Patrick. Cash 240,000 Sonny, Capital 240,000 2. Sonny directly purchases a one-fourth (1/4) interest from Rachel and Patrick by paying Rachel, P192,000, and Patrick, P216,000. The equipment account is undervalued before Sonny's admission. 3. Sonny invests the amount needed to give him one-third (1/3) interest in the capital of the partnership. No goodwill or bonus is recorded. 4. Sonny invests P312,000 for a one-fourth (1/4) interest. Rachel and Patrick agree that some of the inventory is obsolete before Sonny's admission. 5. Sonny invests P360,000 one a one-fifth (1/5) interest. Profits and loss are to be shared by Rachel, Patrick, and Sonny 45:30:25. Goodwill is not recorded. 6. Sonny invests P600,000 for a one-third (1/3) interest. Profits and losses are to be shared by Rachel, Patrick, and…