Moustapha transfers a capital asset with a $60,000 adjusted basis to X Corp in a Section 351 transaction. In exchange, Moustapha receives 80 shares of Class A Common Stock with a FMV of $100,000 and 60 shares of Class B Common Stock with a FMV of $50,000. What is Moustapha's total basis in the Class B Common Stock?
Moustapha transfers a capital asset with a $60,000 adjusted basis to X Corp in a Section 351 transaction. In exchange, Moustapha receives 80 shares of Class A Common Stock with a FMV of $100,000 and 60 shares of Class B Common Stock with a FMV of $50,000. What is Moustapha's total basis in the Class B Common Stock?
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 22P
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Transcribed Image Text:Moustapha transfers a capital asset with a $60,000 adjusted basis to X Corp in a Section 351 transaction. In exchange,
Moustapha receives 80 shares of Class A Common Stock with a FMV of $100,000 and 60 shares of Class B Common Stock
with a FMV of $50,000. What is Moustapha's total basis in the Class B Common Stock?
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