Michael Contributes Equipment with a $25,000 Adjusted Basis and a $40,000

question 53

Essay

Michael contributes equipment with a $25,000 adjusted basis and a $40,000 FMV to Miller Corporation for 25 of its 50 shares of stock. His son, Michael Jr., contributes $10,000 cash for the remaining 25 Miller shares. What tax issues should Michael and his son consider with respect to the stock acquisitions?

---

Definitions:

Diversity

The incorporation of people from diverse backgrounds, including different countries, ethnicities, religious beliefs, social classes, and sexual orientations into a group or organization.

Personal Attributes

Characteristics or qualities that define an individual.

Primary Categories

Basic, broad groups into which information, concepts, or objects are classified.

Gender

Socially constructed roles, behaviors, expressions, and identities of girls, women, boys, men, and gender-diverse people.