Determine the basis of the property contributed in the hands of the corporation in each instance. Assume that the 80% rule is met in all cases. Required: a. Contribution of property with a basis of $1,800 and an FMV of $2,200. b. Contribution of property with a basis of $4,600 and an FMV of $5,400. The stockholder also received $540 cash from the corporation as part of the stock transaction. c. Contribution of property with a basis of $9,000 and an FMV of $14,100. The stockholder also received property with an FMV of $2,500 from the corporation as part of the stock transaction. d. Contribution of a building with an FMV of $240,000, a mortgage (assumed by the corporation) of $140,000, and a basis of $205,000. e. Contribution of a building with an FMV of $1,780,000, a mortgage (assumed by the corporation) of $1,080,000, and a basis of $675,000.

Determine the basis of the property contributed in the hands of the corporation in each instance. Assume that the 80% rule is met in all cases. Required: a. Contribution of property with a basis of $1,800 and an FMV of $2,200. b. Contribution of property with a basis of $4,600 and an FMV of $5,400. The stockholder also received $540 cash from the corporation as part of the stock transaction. c. Contribution of property with a basis of $9,000 and an FMV of $14,100. The stockholder also received property with an FMV of $2,500 from the corporation as part of the stock transaction. d. Contribution of a building with an FMV of $240,000, a mortgage (assumed by the corporation) of $140,000, and a basis of $205,000. e. Contribution of a building with an FMV of $1,780,000, a mortgage (assumed by the corporation) of $1,080,000, and a basis of $675,000.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 16P

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