Required information [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 bases: Inventory Building Land Total FMV Adjusted Basis 44,000 440,000 88,000 660,000 1,012,000 1,320,000 $1,760,000 $1,804,000 $ $ 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 $1,660,000. The transaction met the requirements to be tax-deferred under $351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) sume the corporation assumed a mortgage of $1,860,000 attached to the building and land. Assume the fair market value of the Iding is now $1,100,000 and the fair market value of the land is $2,332,000. The fair market value of the stock remains $1,660,000 How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts?

Required information [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 bases: Inventory Building Land Total FMV Adjusted Basis 44,000 440,000 88,000 660,000 1,012,000 1,320,000 $1,760,000 $1,804,000 $ $ 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 $1,660,000. The transaction met the requirements to be tax-deferred under $351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) sume the corporation assumed a mortgage of $1,860,000 attached to the building and land. Assume the fair market value of the Iding is now $1,100,000 and the fair market value of the land is $2,332,000. The fair market value of the stock remains $1,660,000 How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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