Mai is going to contribute the following assets to a business entity in exchange for an ownership interest. Adjusted Basis FMV Cash $100,000 $100,000 Land and building 60,000 95,000 What are the tax consequences of the contribution to Mai if the business entity is a(n): a. Sole proprietorship? b. General partnership? c. Limited partnership? d. C corporation? e. S corporation?
Mai is going to contribute the following assets to a business entity in exchange for an ownership interest. Adjusted Basis FMV Cash $100,000 $100,000 Land and building 60,000 95,000 What are the tax consequences of the contribution to Mai if the business entity is a(n): a. Sole proprietorship? b. General partnership? c. Limited partnership? d. C corporation? e. S corporation?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 24P
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Transcribed Image Text:Mai is going to contribute the following assets
to a business entity in exchange for an
ownership interest.
Adjusted Basis FMV
Cash $100,000 $100,000
Land and building 60,000 95,000
What are the tax consequences of the
contribution to Mai if the business entity is
a(n):
a. Sole proprietorship?
b. General partnership?
c. Limited partnership?
d. C corporation?
e. S corporation?
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