Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $362,200 and fair market value of $543,300). Simon invests $434,640 of cash. They each receive 100 shares in Ion Corporation, worth $434,640, but Yvonne also receives $108,660 in cash from Ion. Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock. Ion Corporation has a basis of $ in the equipment. Yvonne has a basis of $ for her stock and Simon has a basis of $ for his stock.
Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $362,200 and fair market value of $543,300). Simon invests $434,640 of cash. They each receive 100 shares in Ion Corporation, worth $434,640, but Yvonne also receives $108,660 in cash from Ion. Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock. Ion Corporation has a basis of $ in the equipment. Yvonne has a basis of $ for her stock and Simon has a basis of $ for his stock.
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 46P
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Transcribed Image Text:Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $362,200 and fair market value of $543,300). Simon invests
$434,640 of cash. They each receive 100 shares in Ion Corporation, worth $434,640, but Yvonne also receives $108,660 in cash from Ion.
Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock.
Ion Corporation has a basis of $
in the equipment. Yvonne has a basis of $
for her stock and Simon has a
basis of $
for his stock.
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