Exercise 12-5 (Algorithmic) (LO. 2, 3) Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $174,600 and fair market value $261,900). Simon invests $209,520 of cash. They each receive 100 shares in Ion Corporation, worth $209,520, Yvonne also receives $52,380 of cash from Ion. Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock. Ion Corporation has a basis of $ stock and Simon has a basis of $ in the equipment. Yvonne has a basis of $ for his stock. for
Exercise 12-5 (Algorithmic) (LO. 2, 3) Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $174,600 and fair market value $261,900). Simon invests $209,520 of cash. They each receive 100 shares in Ion Corporation, worth $209,520, Yvonne also receives $52,380 of cash from Ion. Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock. Ion Corporation has a basis of $ stock and Simon has a basis of $ in the equipment. Yvonne has a basis of $ for his stock. for
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 5CE
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Transcribed Image Text:Exercise 12-5 (Algorithmic) (LO. 2, 3)
Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $174,600 and fair market value of
$261,900). Simon invests $209,520 of cash. They each receive 100 shares in Ion Corporation, worth $209,520, but
Yvonne also receives $52,380 of cash from Ion.
Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock.
Ion Corporation has a basis of $
stock and Simon has a basis of $
in the equipment. Yvonne has a basis of $
for his stock.
for her
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