Sim Pathy contributed land (fmv $50,000, basis $40,000, mortgage of $10,000 assumed by corporation) for all stock in CCC corporation. Discuss tax consequences to Sim and C corporation

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Q: Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return…

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Q: Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return…

A: FMV Adjusted Tax Basis Building 114,375 30,500 Land 266,875 122,000   381,250 152,500

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Q: Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return…

A:

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Q: Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return…

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Q: Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return…

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Q: Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return…

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Q: Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return…

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.