Required information Problem 19-40 (LO 19-2) (Algo) [The following information applies to the questions displayed below.] Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases: Inventory Building Land Total FMV $ 40,000 300,000 460,000 Adjusted Tax Basis $ 20,000 200,000 600,000 $ 800,000 $ 820,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $700,000. Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Problem 19-40 Part g (Algo) . Suppose the corporation assumed a mortgage of $900,000 attached to the building and land. The fair market value of the building $500,000 and the fair market value of the land is $1,060,000. The fair market value of the stock remains $700,000. What is the corporation's adjusted tax basis in each of the assets received in the exchange? lote: Do not round intermediate calculations. Inventory Building Land Adjusted basis
Required information Problem 19-40 (LO 19-2) (Algo) [The following information applies to the questions displayed below.] Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases: Inventory Building Land Total FMV $ 40,000 300,000 460,000 Adjusted Tax Basis $ 20,000 200,000 600,000 $ 800,000 $ 820,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $700,000. Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Problem 19-40 Part g (Algo) . Suppose the corporation assumed a mortgage of $900,000 attached to the building and land. The fair market value of the building $500,000 and the fair market value of the land is $1,060,000. The fair market value of the stock remains $700,000. What is the corporation's adjusted tax basis in each of the assets received in the exchange? lote: Do not round intermediate calculations. Inventory Building Land Adjusted basis
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Required information
Problem 19-40 (LO 19-2) (Algo)
[The following information applies to the questions displayed below.]
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for
100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values
and adjusted tax bases:
Inventory
Building
Land
Total
FMV
$ 40,000
300,000
460,000
Adjusted Tax
Basis
$ 20,000
200,000
600,000
$ 800,000
$ 820,000
The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the
corporation's stock received in the exchange was $700,000.
Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
Problem 19-40 Part g (Algo)
g. Suppose the corporation assumed a mortgage of $900,000 attached to the building and land. The fair market value of the building
is $500,000 and the fair market value of the land is $1,060,000. The fair market value of the stock remains $700,000.
What is the corporation's adjusted tax basis in each of the assets received in the exchange?
Note: Do not round intermediate calculations.
Inventory
Building
Land
Adjusted basis](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F65c61ae2-4837-42ab-aad3-55440d172a88%2F43345db8-4fcf-4373-8212-af83cea8fa12%2Fq4jup4t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 19-40 (LO 19-2) (Algo)
[The following information applies to the questions displayed below.]
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for
100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values
and adjusted tax bases:
Inventory
Building
Land
Total
FMV
$ 40,000
300,000
460,000
Adjusted Tax
Basis
$ 20,000
200,000
600,000
$ 800,000
$ 820,000
The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the
corporation's stock received in the exchange was $700,000.
Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
Problem 19-40 Part g (Algo)
g. Suppose the corporation assumed a mortgage of $900,000 attached to the building and land. The fair market value of the building
is $500,000 and the fair market value of the land is $1,060,000. The fair market value of the stock remains $700,000.
What is the corporation's adjusted tax basis in each of the assets received in the exchange?
Note: Do not round intermediate calculations.
Inventory
Building
Land
Adjusted basis
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