Individuals Jimmy and Ellen Form JE Corporation

question 53

Essay

Individuals Jimmy and Ellen form JE Corporation. Ellen transfers land and a building with a $175,000 adjusted basis and $200,000 FMV in exchange for 50% of the stock of the JE Corporation and a $20,000 note. Jimmy transfers cash of $200,000 for 50% of the stock and a $20,000 note. The JE stock has a fair market value of $360,000. What is:
(a)the amount of Ellen's gain or loss recognized on the transfer?
(b)the basis of her stock in JE Corporation?
(c)JE Corporation's basis in the land and building (together)transferred by Ellen?

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Definitions:

Diverse Groups

Collections of individuals with varied characteristics such as cultural, racial, gender, and socioeconomic backgrounds.

Mentor

A mentor is an experienced and trusted adviser who provides guidance, support, and wisdom to a less experienced individual, often in a professional or educational context.

Special Peers

Individuals within a group who have distinct skills, qualities, or roles that set them apart from others.

Collegial Peers

Individuals within the same organization or professional field who are considered equals in status and collaborate or interact on a professional level.