Rob transferred the following assets and liabilities to Warble Corporation. Adjusted Basis Fair Market Value Building $210,000 $225,000 Equipment 45,000 75,000 Trucks 15,000 30,000 Mortgage(held 30,000 30,000 for four years) on building In return, Rob received $75,000 in cash plus 90% of Warble Corporation's only class of stock outstanding (fair market value of $225,000).

Rob transferred the following assets and liabilities to Warble Corporation. Adjusted Basis Fair Market Value Building $210,000 $225,000 Equipment 45,000 75,000 Trucks 15,000 30,000 Mortgage(held 30,000 30,000 for four years) on building In return, Rob received $75,000 in cash plus 90% of Warble Corporation's only class of stock outstanding (fair market value of $225,000).

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 5CPA

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