What is Jenna’s basis in TOBY, INC. stock? Does Ollie have income, gain , or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. What is Ollie’s basis in his TOBY, INC. stock? What basis does TOBY, INC. have in: The computer and peripheral equipment Office furnishings Land and building
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- What is Jenna’s basis in TOBY, INC. stock?
- Does Ollie have income, gain , or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss.
- What is Ollie’s basis in his TOBY, INC. stock?
- What basis does TOBY, INC. have in:
- The computer and peripheral equipment
- Office furnishings
- Land and building
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- Mr. Boyd and Ms. Tuck decide to form a new corporation named BT Inc. Mr. Boyd transfers $20,000 cash, equipment (FMV $40,000; adjusted tax basis $41,500), and business inventory ($20,000 FMV; adjusted tax basis $12,000), and Ms. Tuck drafts the legal documents and designs the accounting system for B, valued at $20,000. BT issues 1,000 shares of common stock to its two shareholders. 2. Compute Ms. Tuck's realized and recognized gain on her exchange of property for stock, and determine her tax basis in her BT common shareMr. Boyd and Ms. Tuck decide to form a new corporation named BT Inc. Mr. Boyd transfers $20,000 cash, equipment (FMV $40,000; adjusted tax basis $41,500), and business inventory ($20,000 FMV; adjusted tax basis $12,000), and Ms. Tuck drafts the legal documents and designs the accounting system for B, valued at $20,000. BT issues 1,000 shares of common stock to its two shareholders. 1. Compute Mr. Boyd's realized and recognized gain on his exchange of property for stock, and determine his tax basis in his BT common shares.Mr. Boyd and Ms. Tuck decide to form a new corporation named BT Inc. Mr. Boyd transfers $20,000 cash, equipment (FMV $40,000; adjusted tax basis $41,500), and business inventory ($20,000 FMV; adjusted tax basis $12,000), and Ms. Tuck drafts the legal documents and designs the accounting system for B, valued at $20,000. BT issues 1,000 shares of common stock to its two shareholders. How many shares should Mr. Boyd and Ms. Tuck each receive?
- Mr. Boyd and Ms. Tuck decide to form a new corporation named BT Inc. Mr. Boyd transfers $20,000 cash, equipment (FMV $40,000; adjusted tax basis $41,500), and business inventory ($20,000 FMV; adjusted tax basis $12,000), and Ms. Tuck drafts the legal documents and designs the accounting system for B, valued at $20,000. BT issues 1,000 shares of common stock to its two shareholders. a) Determine BT Inc.’s book and tax basis in the inventory transferred by Mr. Boyd and the equipment transferred by Ms. Tuck b) and the book and tax basis of the services (before they are expensed/amortized as organization and startup costs) performed by Ms. Tuck.On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 26,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Sell $13,000 of common stock to Suzie. Jul. 1 Sell $13,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $5,640 ($470 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation. Jul. 4 Purchase office supplies of $1,800 on account. Jul. 7 Pay for advertising of $350 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $10,100 cash.…Individuals A and B are planning to form a new corporation: NEWCO. A will contribute to NEWCO several high-end super computers with a combined, fair market value of 80,000. A's adjusted basis in these computers is 10,000. B will contribute to NEWCO 80,000 of cash. NEWCO will issue to each of A and B, 100 shares of voting common stock in exchange for the property and cash contributed. Consequently, there will be 200 common shares outstanding with a total initial value of $160,000? What is A's basis in her shares of NEWCO, assuming the contributions meet all the requirements of IRC 351? a. A’s basis for her stock is 80,000, same as B. b. A’s basis for her stock is 10,000, i.e., a substituted basis. c. A's basis for her stock is zero because the company has not generated E&P A. A’s basis for her stock is 100, which is equal to the number of shares she received.
- Curly, Larry, Moe and Serafina incorporated Stooges Corp. As part of an integrated transaction, they each contributed the following: Curly contributed cash of $100,000 in exchange for 10 shares of Stooges Corp. stock Larry contributed equipment (FMV = $100,000; basis = $147,539) in exchange for 10 shares of Stooges Corp. stock Moe contributed a building (FMV = $120,000; basis = $59,820) in exchange for 10 shares of Stooges Corp. stock and $20,000 cash Serafina contributed land (FMV = $150,000; basis = $144,889) in exchange for 10 shares of Stooges Corp. stock and $50,000 cash There are 40 total shares of Stooges Corp. outstanding (these are the 40 shares owned by Curly, Larry, Moe and Serafina). Each share is worth $10,000. No tax elections were made. What is Stooges Corp.'s basis in the land?On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 37,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Sell $18,500 of common stock to Suzie. Jul. 1 Sell $18,500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,920 ($410 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation. Jul. 4 Purchase office supplies of $1,700 on account. Jul. 7 Pay for advertising of $280 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $19,500 cash.…Melanie founded her company using $250,000 of her own money, issuing herself 100,000 shares of stock. An angel investor bought an additional 50,000 shares for $350,000. She now sells another 190,000 shares to a venture capitalist for $750,000. What percentage of the firm does Melanie now own? OA. 19% OB. 38% O C. 50% O D. 29% O E. 33% C
- Check my answer. Seth, Pete, Cara, and Jen form Kingfisher Corporation with the following consideration consideration transferred From Seth Inventory Basis of transferor $30,000 FMV $96,000 30 shares From Cara Basis of transferor $15,000 FMV $15,000 30 shares From Pete Basis of transfer $45,000 FMV $99,000 Depr of equip $30,000 30 shares *Seth receives $6,000 in cash in addition to the 30 shares. Seth's recognized gain or loss FMV-basis= 96,000-30,000=66,000 cash received = $6,000 lessor of the two =$6,000 Seth's recognized gain Seth’s basis in the Kingfisher Corporation stock. Basis of inventory given+ recognized gain = 30,000+6,000=36,000 basis of stock received or is it $30,000+6,000-6,000 $30,000 basis of stockProblem 2: The following three individuals decide to form TOBY, INC., a C corporation: James: Receives 500 shares of stock Services performed (developed technology platform) $40,000 Contributed computer and peripheral equipment 5,000 10,000 Jenna: Receives 500 shares of stock Cash 20,000 Office furnishings (desk, chairs, retail fixtures) 10,000 30,000 Ollie: Receives 500 shares of stock Land and Building 30,000 100,000 Mortgage on land & building (assumed by TOBY, INC.) 60,000 Does James have income, gain or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. What is James’s basis in TOBY, INC. stock? Does Jenna have income, gain, or loss on the transaction in which she receives stock…Elaine, James, and Jeremy form Forest Corporation by transferring the following items to the corporation: Items transferred Basis Fair Market Value Number of Shares Issued From Elaine: Cash $60,000 $60,000 200 shares Equipment 30,000 340,000 From James: Land 100,000 540,000 200 shares Mortgage 140,000 140,000 From Jeremy: Office equipment 50,000 260,000* 100 shares Besides the receiving 100 shares of stock,…