On January 7, 2022, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under § 351. The shareholder's basis, the fair market value, and the built-in gain (loss) of each property are: Shareholder's Fair Market Built in Gain Basis Value or (Loss) Property 1 Property 2 $551,000 $661,200 $110,200 $936,700 $716,300 Net built-in loss ($220,400) ($110,200) Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 25% shareholder when the property is worth $606,100. a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. Martin's basis is Property 1 is a carryover Martin's basis in Property 2 is a stepped-down basis of $ 551,000. basis of $ 826,500 . b. Compute Martin's realized and recognized loss on the liquidating distribution of Property 2. 110,200 Martin has a realized loss of $ and a recognized loss of $ ✔.

On January 7, 2022, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under § 351. The shareholder's basis, the fair market value, and the built-in gain (loss) of each property are: Shareholder's Fair Market Built in Gain Basis Value or (Loss) Property 1 Property 2 $551,000 $661,200 $110,200 $936,700 $716,300 Net built-in loss ($220,400) ($110,200) Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 25% shareholder when the property is worth $606,100. a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. Martin's basis is Property 1 is a carryover Martin's basis in Property 2 is a stepped-down basis of $ 551,000. basis of $ 826,500 . b. Compute Martin's realized and recognized loss on the liquidating distribution of Property 2. 110,200 Martin has a realized loss of $ and a recognized loss of $ ✔.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 15CE

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8. LO.1 On January 7, 2022, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under § 351. The share- holder's basis, the fair market value, and the built-in gain (loss) of each property are: Shareholder's Basis Fair Market Value Property 1 Property 2 $300,000 525,000 Net built-in loss $375,000 400,000 Built-In Gain (Loss) $ 75,000 (125,000) ($ 50,000) Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 30% shareholder when the property is worth $350,000. a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. b. Compute Martin's realized and recognized loss on the liquidating distribution of Property 2.
Exercise 20-18 (Algorithmic) (LO. 1) On January 7, 2022, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under § 351. The shareholder's basis, the fair market value, and the built-in gain (loss) of each property are: Property 1 Property 2 Net built-in loss Shareholder's Fair Market Built in Gain Basis Value or (Loss) $439,440 $476,060 $366,200 $622,540 $73,240 ($146,480) ($73,240) Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 20% shareholder when the property is worth $402,820. a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. 125,000 x. Martin's basis is Property 1 is a carryover Martin's basis in Property 2 is a stepped-down ✔ basis of $ ✔basis of $ 3,233,223 X. b. Compute Martin's realized and recognized loss on the liquidating distribution of Property 2. 2,324,232 X. 23,324 X and a recognized loss of $ Martin has a realized loss of $
Exercise 20-15 (LO. 1) On January 4, 2018, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under § 351. The shareholder's basis, the fair market value, and the built-in gain (loss) of each property are: Property 1 Property 2 Net built-in loss Shareholder's Fair Market Built in Gain Basis Value or (Loss) $300,000 $75,000 $525,000 ($125,000) ($50,000) Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 30% shareholder when the property is worth $350,000. a. Compute Martin's basis in Property 1 and in Property 2 as of January 4, 2018. Martin's basis is Property 1 is a carryover ✔ basis of $ Martin's basis in Property 2 is a stepped-down ✓✔ basis of $ Feedback $375,000 $400,000 b. Compute Martin's realized and recognized loss on the liquidating distribution of Property 2. Martin has realized loss of $ and a recognized loss of $ ▼ Check My Work When property is transferred to a…
On January 7, 2022, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under § 351. The shareholder's basis, the fair market value, and the built-in gain (loss) of each property are: Shareholder's Fair Market Built in Gain Basis Value or (Loss) Property 1 $471,800 $566,160 $94,360 Property 2 $802,060 $613,340 ($188,720) Net built-in loss ($94,360) Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 45% shareholder when the property is worth $518,980. a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. Martin's basis is Property 1 is a Martin's basis in Property 2 is a basis of $ basis of $ b. Compute Martin's realized and recognized loss on the liquidating distribution of Property 2. Martin has a realized loss of $ and a recognized loss of $
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