Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Casey transfers property with a tax basis of $3,0BO and a fair market value of $7
Casey transfers property with a tax basis of $3,0BO and a fair market value of $7.700 to a corporation in exchange for stock with a fair market value of $6,200 and $675 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $825 on the property transferred. Casey also incurred selling expenses of $496. What is the amount realized by Casey in the exchange? Multiple Choice $7700 $7,204 S7104 $6,429
Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $642,500 plus $642,500 in cash. Simone's tax basis in the Purple stock was $206,000. What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives? Multiple Choice O $1079,000 guin recognized and a basis in Plum stock of $1205.000. O $1079,000 gain recognized and a basis in Plum stock of $642.500. $642,500 gain recognized and a basis in Plum stock of 5642,500. $642,500 gain recognized and a basis in Plum stock of $200,000
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom recelved and with a fair market value of $630,000. The corporation's basis in the Tea Company stock was $452,500. The land had a basis to Tea Company of $687.500. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives? Multiple Choice $177,500 gain recognized and a basis in the land of $687,500 O $177,500 gain recognized and a basis in the land of $630,000 No gain recognized and a basis in the land of $687,500 No gain recognized and a basis in the land of $235.000
1)amount realised = fair market value+cash transactions+liability - seling expenses
= 6200+675+825-495 = 7205
2)$642500 gain recognised and a basis in plum stock of 642500
Gain recognized is $642500, the lesser of gain realized of $1079,000 or cash received.The stock basis is the carryover basis of $206,000 plus gain recognized less cashreceived. If Simone sells the stock for $642500, she will recognize gain of $230500, anamount equal to the gain deferred on the exchange.
3)$177500 gain recognised and basis in the land of 630000
The exchange is taxable. Red Blossom recognizes the full amount of gain of $177500and receives a basis in the land equal to the land's fair market value
= 630000-452500=177500
