[The following information applies to the questions displayed below.] Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in 100 percent of the corporation's stock. The property transferred to the corporation had the following fair marke and adjusted tax bases: Inventory Building Land Total FMV $ 96,000 720,000 1,104,000 $ 1,920,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value corporation's stock received in the exchange was $1,820,000. Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable Inventory Adjusted Tax Basis $ 48,000 480,000 1,440,000 $ 1,968,000 d. What is the corporation's adjusted tax basis in each of the assets received in the exchange? Building Land
[The following information applies to the questions displayed below.] Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in 100 percent of the corporation's stock. The property transferred to the corporation had the following fair marke and adjusted tax bases: Inventory Building Land Total FMV $ 96,000 720,000 1,104,000 $ 1,920,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value corporation's stock received in the exchange was $1,820,000. Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable Inventory Adjusted Tax Basis $ 48,000 480,000 1,440,000 $ 1,968,000 d. What is the corporation's adjusted tax basis in each of the assets received in the exchange? Building Land
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 32P
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![Required information
[The following information applies to the questions displayed below.]
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in retur
100 percent of the corporation's stock. The property transferred to the corporation had the following fair market val
and adjusted tax bases:
Inventory
Building
Land
Total
The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of th
corporation's stock received in the exchange was $1,820,000.
Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
Adjusted basis
FMV
$ 96,000
720,000
1,104,000
$ 1,920,000
d. What is the corporation's adjusted tax basis in each of the assets received in the exchange?
$
Inventory
Adjusted Tax
Basis
$ 48,000
480,000
1,440,000
$ 1,968,000
48,000 $
Building
480,000 $
Land
436,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F508ea9c4-9789-4f1c-b0df-20ed928eebbb%2F0818d67b-f2df-46ba-a901-98e6ffb8699f%2Fxzpzv0j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in retur
100 percent of the corporation's stock. The property transferred to the corporation had the following fair market val
and adjusted tax bases:
Inventory
Building
Land
Total
The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of th
corporation's stock received in the exchange was $1,820,000.
Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
Adjusted basis
FMV
$ 96,000
720,000
1,104,000
$ 1,920,000
d. What is the corporation's adjusted tax basis in each of the assets received in the exchange?
$
Inventory
Adjusted Tax
Basis
$ 48,000
480,000
1,440,000
$ 1,968,000
48,000 $
Building
480,000 $
Land
436,000
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