Discuss transfers property for stock

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Ann, and Irene incorporate their respective businesse and form Dove Corporation on March 3, 2008. Later, Bob transfers property for stock in Dove Corporation. Ann, Irene and bob are the only shareholders in Dove Corporation.

1. Ann exchanges her property (basis of $100,000 and fair market value of $400,000) for 280 shares in Dove corporation on March 3, 2008. The property transferred by Ann is subject to a liability of $120,000 which is assumed by Dove Corporation. there was a bona-fide business purpose for the liability.

2 Irene exchanges her property (basis of $140,000 and fair market value of $600,000) for 600 shares in Dove Corporation on March 4, 2008.

3 Bob transfers a business building (basis of $1,050,000 and fair market value of $1,000,000) for 1000 shares in Dove Corporation on December 17, 2010. Bobs transfer is not part of a prearranged plan with Ann and Irene to incorporate their businesses.

(a) what gain or loss, if any, wwill bob recognize on the transfer?

(b) what gain or loss, if any, will Ann recognize on the transfer?

(c) what gain or loss, if any, will Irene recognize on the transfer?

(d) what is bob's basis in his stock?

(e) what is ann's basis in her stock?

(f) what is Irene's basis In her stock?

Reference no: EM131749549

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