Three individuals form Skylark Corporation with the following contributions: Cliff, cash of $50,000 for 50 shares; Brad, land worth $20,000 (basis of $20,000) for 20 shares; and Ron, cattle worth $9,000 (basis of $7,000) for 9 shares and services worth $21,000 for 21 shares. Ron's basis in his stock is 527,000. Brad's basis in his stock is $20,000, Ron's basis in his stock is $6,000. These transfers are fully taxable and not subject to § 351. None of the other choices are correct.

Three individuals form Skylark Corporation with the following contributions: Cliff, cash of $50,000 for 50 shares; Brad, land worth $20,000 (basis of $20,000) for 20 shares; and Ron, cattle worth $9,000 (basis of $7,000) for 9 shares and services worth $21,000 for 21 shares. Ron's basis in his stock is 527,000. Brad's basis in his stock is $20,000, Ron's basis in his stock is $6,000. These transfers are fully taxable and not subject to § 351. None of the other choices are correct.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 28CE

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