exchange for 50% c poration worth $41

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter18: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 2BCRQ
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Question
Individuals Julie and Brandon form JB
Corporation. Julie transfers cash of
$425,000 in exchange for 50% of the stock
of the JB Corporation worth $410,000 and
a $15,000 note. Brandon transfers
equipment with a $390,000 adjusted basis
and a $425,000 FMV for 50% of the stock
worth $410,000 and a note of the JB
Corporation valued at $15,000. Brandon's
basis in the stock received is
Group of answer choices
$390,000.
$350,000.
$425,000.
$410,000.
Transcribed Image Text:Individuals Julie and Brandon form JB Corporation. Julie transfers cash of $425,000 in exchange for 50% of the stock of the JB Corporation worth $410,000 and a $15,000 note. Brandon transfers equipment with a $390,000 adjusted basis and a $425,000 FMV for 50% of the stock worth $410,000 and a note of the JB Corporation valued at $15,000. Brandon's basis in the stock received is Group of answer choices $390,000. $350,000. $425,000. $410,000.
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