SWFT Corp Partner Estates Trusts
42nd Edition
ISBN: 9780357161548
Author: Raabe
Publisher: Cengage
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- 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. Amount a. Corporation's basis in property b. Corporation's basis in property c. Corporation's basis in property d. Corporation's basis in…arrow_forwardROK Company purchased land from XYZ company by issuing 6,000 shares of it's $5 par value stock. At the time of the purchase, ROK's stock was selling for $20 a share and the land was worth $100,000. The journal entry to record this purchase would include a: Debit to Land of $100,000 O Debit to land of $30,000 O Debit to Land of $120,000 Credit to Common Stock of $120,000arrow_forward3. During the year, Chinawish Co. distributed property dividends in the form of inventories. The carrying amount on the date of declaration was P2,000,000 and the fair values, which approximated the net realizable values, were P1,600,000 on the date of declaration and P2,200,000 on the date of distribution. Requirement: Provide the journal entries on the dates of declaration and distribution.arrow_forward
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