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: Adjusted Basis Inventory$ FMV 56,000 $ 28,000 280,000 644,000 840,000 Building 420,000 Land Total $1,120,000 $1,148,000 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 $1,020,000. 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.) Assume the corporation assumed a mortgage of $1,220,000 attached to the building and land. Assume the fair market value of the building is now $700,000 and the fair market value of the land is $1,484,000. The fair market value of the stock remains $1,020,000. g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermediate calculations.) Answer is complete but not entirely correct. Inventory Building Land Adjusted basis $ 28,000 $ 0 $264,000 ×
Required information [The following information applies to the questions displayed below.] Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted bases: Adjusted Basis Inventory$ FMV 56,000 $ 28,000 280,000 644,000 840,000 Building 420,000 Land Total $1,120,000 $1,148,000 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 $1,020,000. 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.) Assume the corporation assumed a mortgage of $1,220,000 attached to the building and land. Assume the fair market value of the building is now $700,000 and the fair market value of the land is $1,484,000. The fair market value of the stock remains $1,020,000. g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermediate calculations.) Answer is complete but not entirely correct. Inventory Building Land Adjusted basis $ 28,000 $ 0 $264,000 ×
Chapter21: Partnerships
Section: Chapter Questions
Problem 43P
Related questions
Question
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:
| FMV | Adjusted Basis | ||||
| Inventory | $ | 56,000 | $ | 28,000 | |
| Building | 420,000 | 280,000 | |||
| Land | 644,000 | 840,000 | |||
| Total | $ | 1,120,000 | $ | 1,148,000 | |
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 $1,020,000. 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.)
Assume the corporation assumed a mortgage of $1,220,000 attached to the building and land. Assume the fair market value of the building is now $700,000 and the fair market value of the land is $1,484,000. The fair market value of the stock remains $1,020,000.
g. What is the corporation’s adjusted basis in each of the assets received in the exchange?
![Required information
[The following information applies to the questions displayed below.]
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the
corporation in return for 100 percent of the corporation's stock. The property transferred to the
corporation had the following fair market values and adjusted bases:
Adjusted
Basis
Inventory$
FMV
56,000 $
28,000
280,000
644,000
840,000
Building 420,000
Land
Total $1,120,000 $1,148,000
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 $1,020,000. 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.)
Assume the corporation assumed a mortgage of $1,220,000 attached to the building and land. Assume the
fair market value of the building is now $700,000 and the fair market value of the land is $1,484,000. The
fair market value of the stock remains $1,020,000.
g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round
intermediate calculations.)
Answer is complete but not entirely correct.
Inventory
Building
Land
Adjusted
basis
$ 28,000 $
0 $264,000 ×](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F34472db7-d611-4362-abf6-508b9529c7db%2F5c43e761-9d15-432a-97d3-2341543d3a8b%2Fx6nkbgj_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the
corporation in return for 100 percent of the corporation's stock. The property transferred to the
corporation had the following fair market values and adjusted bases:
Adjusted
Basis
Inventory$
FMV
56,000 $
28,000
280,000
644,000
840,000
Building 420,000
Land
Total $1,120,000 $1,148,000
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 $1,020,000. 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.)
Assume the corporation assumed a mortgage of $1,220,000 attached to the building and land. Assume the
fair market value of the building is now $700,000 and the fair market value of the land is $1,484,000. The
fair market value of the stock remains $1,020,000.
g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round
intermediate calculations.)
Answer is complete but not entirely correct.
Inventory
Building
Land
Adjusted
basis
$ 28,000 $
0 $264,000 ×
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