User Account

All Pages

Discuss conan recognize as a result of the transaction

Assignment Help Accounting Basics
Reference no: EM131770728

1. Brad, Scott and Jake each contribute property to form BSJ Corporation. Brad contributes a building with a fair market value of $450,000 and a basis of $100,000 and receives 45% of the stock of BSJ. Scott contributes $100,000 cash and equipment with a fair market value and tax basis of $350,000, receiving 45% of the stock of BSJ. Jake contributes a collection of vintage automobiles with a fair market value of $150,000 and tax basis of $130,000 in exchange for 10% of the stock of BSJ and $50,000 cash. What tax basis will each take in their respective BSJ stock?

2. Conan and Andy decide to form a new corporation, LN Corp. Conan contributes property with a basis of $10,000 and a fair market value of $18,000 in exchange for 5 shares of LN sotck and $13,000 in cash, which LN borrows from a bank to finance. Andy contributes property with a basis of $35,000 and a fair market value of $80,000 in exchange for 80 shares of LN stock.

- How much taxable gain or low will Conan recognize as a result of the transaction?

- What basis will Conan take in the LN stock he receives?

Reference no: EM131770728

Questions Cloud

Prepare a numerical reconciliation and explanation : Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing.
Provide resource information for new members : Provide resource information for new members, including contact information, membership requirements, and organizational endorsements.
Discuss issues impact the various financial statements : have when it comes to the selection of long-term investments and how those issues impact the various financial statements
Explain the critical infrastructure information : Critical infrastructure information (CII) is defined as a type of data or information that is representative of a critical infrastructure.
Discuss conan recognize as a result of the transaction : How much taxable gain or low will Conan recognize as a result of the transaction
What current health care problems do native american face : What methods of healing and remedies do Native American use? What current health care problems do they face? What can done to improve their healthcare status?
What browser a user is using : Why would a web developer need to know what browser a user is using? What about mobile browsers, are these important for a developer to identify?
Loan tax consequences to cooper corporation and sandy : Assume Sandy is a shareholder in Cooper Corporation (rather than an employee). What are the loan tax consequences to Cooper Corporation and Sandy?
Calculate sirens manufacturing cost per unit : Assuming the company uses variable costing, calculate Siren's manufacturing cost per unit

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd