Gearty and Olinto organized The Worthington Corp., which issued voting common stock with a fair market value of $240,000. They each transferred property in exchange for stock as follows: Property Gearty Building Olinto Land The building was subject to a $20,000 mortgage that was assumed by The Worthington Corp. What was The Worthington Corp.'s basis in the building? a. $60,000 b. $80,000 c. $144,000 d. $164,000 Adjusted Basis $80,000 10,000 Fair Market Value $164,000 96,000 Percentage of The Worthington Corp. Stock Acquired 60% 40%

Gearty and Olinto organized The Worthington Corp., which issued voting common stock with a fair market value of $240,000. They each transferred property in exchange for stock as follows: Property Gearty Building Olinto Land The building was subject to a $20,000 mortgage that was assumed by The Worthington Corp. What was The Worthington Corp.'s basis in the building? a. $60,000 b. $80,000 c. $144,000 d. $164,000 Adjusted Basis $80,000 10,000 Fair Market Value $164,000 96,000 Percentage of The Worthington Corp. Stock Acquired 60% 40%

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 1BCRQ

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