Solution-What are the tax consequences to Dan and Patricia

What are the tax consequences to Dan and Patricia

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Question - Dan Knight and Patricia Chen, who are good friends, form Crane Corporation. Dan transfers land (worth $200,000, basis of $60,000) for 50% of the stock in Crane. Patricia transfers machinery (worth $150,000, adjusted basis of $30,000) and provides services worth $50,000 for 50% of the stock.

Required -

a. What are the tax consequences to Dan and Patricia?

b. What is Crane Corporation's basis in the land and the machinery?

Reference no: EM132487382

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What are the tax consequences to Dan and Patricia

Reference no: EM132487382

Reference no: EM132487382

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