What is Jenna’s basis in TOBY, INC. stock? Does Ollie have income, gain , or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. What is Ollie’s basis in his TOBY, INC. stock? What basis does TOBY, INC. have in: The computer and peripheral equipment Office furnishings Land and building
What is Jenna’s basis in TOBY, INC. stock? Does Ollie have income, gain , or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. What is Ollie’s basis in his TOBY, INC. stock? What basis does TOBY, INC. have in: The computer and peripheral equipment Office furnishings Land and building
Chapter7: Corporations: Reorganizations
Section: Chapter Questions
Problem 31P
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Question
- What is Jenna’s basis in TOBY, INC. stock?
- Does Ollie have income, gain , or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss.
- What is Ollie’s basis in his TOBY, INC. stock?
- What basis does TOBY, INC. have in:
- The computer and peripheral equipment
- Office furnishings
- Land and building
Transcribed Image Text:The following three individuals decide to form TOBY, INC., a C corporation:
James: Receives 500 shares of stock
Services performed (developed technology platform)
$40,000
Contributed computer and peripheral equipment
5,000
10,000
Jenna: Receives 500 shares of stock
Cash
20,000
Office furnishings (desk, chairs, retail fixtures)
10,000
30,000
Ollie: Receives 500 shares of stock
Land and Building
30,000
100,000
Mortgage on land & building (assumed by TOBY, INC.)
60,000
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