María and Bob form Robin Corporation. María transfers property worth $130,000 (basis of $45,500) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $52,000 (basis of $10,400) and for legal services (worth $5,200) in organizing the corporation. If there is no gain or loss, enter "O" for the amount. a. What gain or income, if any, will the parties recognize on the transfer María recognizes no capital gain or loss of $.............. Bob recognizes ordinary income of $...? b. What basis do María and Bob have in the Robin Corporation stock? María has a basis of $......., and Bob has a basis of $........... in the stock. c. What is Robin Corporation's basis in the property and services it received from María and Bob? Robin Corporation has a basis of $...........in the property María transferred and a basis of $......... in the property Bob transferred.
María and Bob form Robin Corporation. María transfers property worth $130,000 (basis of $45,500) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $52,000 (basis of $10,400) and for legal services (worth $5,200) in organizing the corporation. If there is no gain or loss, enter "O" for the amount. a. What gain or income, if any, will the parties recognize on the transfer María recognizes no capital gain or loss of $.............. Bob recognizes ordinary income of $...? b. What basis do María and Bob have in the Robin Corporation stock? María has a basis of $......., and Bob has a basis of $........... in the stock. c. What is Robin Corporation's basis in the property and services it received from María and Bob? Robin Corporation has a basis of $...........in the property María transferred and a basis of $......... in the property Bob transferred.
Chapter18: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 31P
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Transcribed Image Text:María and Bob form Robin Corporation. María transfers property worth $130,000 (basis of $45,500) for 70
shares in Robin Corporation. Bob receives 30 shares for property worth $52,000 (basis of $10,400) and for
legal services (worth $5,200) in organizing the corporation.
If there is no gain or loss, enter "O" for the amount.
a. What gain or income, if any, will the parties recognize on the transfer
María recognizes no capital gain or loss of $............. Bob. recognizes ordinary income of $...?
b. What basis do María and Bob have in the Robin Corporation stock?
María has a basis of $....., and Bob has a basis of $..............the stock.
c. What is Robin Corporation's basis in the property and services it received from María and Bob?
Robin Corporation has a basis of $............ the property María transferred and a basis of $........ in the
property Bob transferred.
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