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What tax basis will each take in their respective bsj stock

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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?

a. Brad

b. Scott

c. Jake

Basis= check figure $100,000

Please show formulas for parts a-c calculations

Reference no: EM131772470

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