Jocelyn contributes land with a basis of $56,000 and fair market value of $84,000 and inventory with a basis of $19,000 and fair market value of $28,500 in exchange for 100% of Zion Corporation stock. The land is subject to a $14,000 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange l § 357(a). As a result, Jocelyn has income of $ tax-free under § 351 because the release of a liability and a basis $ treated as boot under in her stock.
Jocelyn contributes land with a basis of $56,000 and fair market value of $84,000 and inventory with a basis of $19,000 and fair market value of $28,500 in exchange for 100% of Zion Corporation stock. The land is subject to a $14,000 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange l § 357(a). As a result, Jocelyn has income of $ tax-free under § 351 because the release of a liability and a basis $ treated as boot under in her stock.
Chapter18: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 21CE
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Transcribed Image Text:Jocelyn contributes land with a basis of $56,000 and fair market value of $84,000 and inventory with a basis of $19,000 and fair market
value of $28,500 in exchange for 100% of Zion Corporation stock. The land is subject to a $14,000 mortgage.
Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received.
If an amount is zero, enter "0".
The exchange l
§ 357(a). As a result, Jocelyn has income of $
tax-free under § 351 because the release of a liability
and a basis $
treated as boot under
in her stock.
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