Mary Contributed A Building Fmv 500 000 Adjusted Based 300 000 To A Corporation

FAIR MARKET VALUE

Inventory $60,000 $100,000

Equipment 150,000 105,000

Shelving 80,000 65,000

Total $290,000 $270,000

(1) What is Maria’s recognized gain or loss?

(2) What is Maria’s basis in the stock?

(3) What is Crane’s basis in the inventory, equipment, and shelving?

9. Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $165,000 (basis of $30,000) and for legal services (worth $15,000) in organizing the corporation.

(1) What gain or income, will the parties recognize on the transfer?

(2) What basis do Ann and Bob have in the stock in Robin Corporation?

Ann:

Bob:

(3) What is Robin Corporation’s basis in the property and services it received from Ann and Bob?

 

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