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 tax bases: Inventory Building Land Total FMV $ 68,000 510,000 782,000 Adjusted Tax Basis $ 34,000 340,000 1,020,000 $ 1,360,000 $ 1,394,000 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 $1,260,000. Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. g. Suppose the corporation assumed a mortgage of $1,460,000 attached to the building and land. The fair market value of the building is $850,000 and the fair market value of the land is $1,802,000. The fair market value of the stock remains $1,260,000. What is the corporation's adjusted tax basis in each of the assets received in the exchange? Note: Do not round intermediate calculations. Inventory Building Land Adjusted basis $ 35,650
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 tax bases: Inventory Building Land Total FMV $ 68,000 510,000 782,000 Adjusted Tax Basis $ 34,000 340,000 1,020,000 $ 1,360,000 $ 1,394,000 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 $1,260,000. Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. g. Suppose the corporation assumed a mortgage of $1,460,000 attached to the building and land. The fair market value of the building is $850,000 and the fair market value of the land is $1,802,000. The fair market value of the stock remains $1,260,000. What is the corporation's adjusted tax basis in each of the assets received in the exchange? Note: Do not round intermediate calculations. Inventory Building Land Adjusted basis $ 35,650
Chapter17: Property Transactions: §1231 And Recapture Provisions
Section: Chapter Questions
Problem 48P
Related questions
Question
Gadubhi
![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 tax bases:
Inventory
Building
Land
Total
FMV
$ 68,000
510,000
782,000
Adjusted Tax
Basis
$ 34,000
340,000
1,020,000
$ 1,360,000
$ 1,394,000
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 $1,260,000.
Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
g. Suppose the corporation assumed a mortgage of $1,460,000 attached to the building and land. The fair market value of the building
is $850,000 and the fair market value of the land is $1,802,000. The fair market value of the stock remains $1,260,000.
What is the corporation's adjusted tax basis in each of the assets received in the exchange?
Note: Do not round intermediate calculations.
Inventory
Building
Land
Adjusted basis
$
35,650](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c1491f8-d03c-4599-a3c3-f9ea8f085cb3%2Fde4025ba-5bd0-4c9d-a5b9-84169eef53aa%2F4zzihsk_processed.jpeg&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 tax bases:
Inventory
Building
Land
Total
FMV
$ 68,000
510,000
782,000
Adjusted Tax
Basis
$ 34,000
340,000
1,020,000
$ 1,360,000
$ 1,394,000
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 $1,260,000.
Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
g. Suppose the corporation assumed a mortgage of $1,460,000 attached to the building and land. The fair market value of the building
is $850,000 and the fair market value of the land is $1,802,000. The fair market value of the stock remains $1,260,000.
What is the corporation's adjusted tax basis in each of the assets received in the exchange?
Note: Do not round intermediate calculations.
Inventory
Building
Land
Adjusted basis
$
35,650
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