Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases: FMV Adjusted Tax Basis Inventory $ 17,000 $ 6,300 Building 72, 250 48,000 Land 155, 000 90,500 Total $ 244,250 $ 144,800 The fair market value of the corporation's stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ramon. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. c. What is Ramon's basis in the stock received in the new corporation?
Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases: FMV Adjusted Tax Basis Inventory $ 17,000 $ 6,300 Building 72, 250 48,000 Land 155, 000 90,500 Total $ 244,250 $ 144,800 The fair market value of the corporation's stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ramon. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. c. What is Ramon's basis in the stock received in the new corporation?
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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Question
Transcribed Image Text:Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the
corporation in return for 100 percent of the corporation's stock. The property transferred to the
corporation had the following fair market values and adjusted tax bases: FMV Adjusted Tax Basis
Inventory $ 17,000 $ 6,300 Building 72, 250 48,000 Land 155, 000 90,500 Total $ 244,250 $
144,800 The fair market value of the corporation's stock received in the exchange equaled the fair
market value of the assets transferred to the corporation by Ramon. Note: Leave no answer blank.
Enter zero if applicable. Negative amount should be indicated by a minus sign. c. What is Ramon's
basis in the stock received in the new corporation?
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