Melanie and Sonny Form Bird Enterprises

question 89

Essay

Melanie and Sonny form Bird Enterprises.Sonny contributes cash of $100,000 and land worth $50,000 (adjusted basis of $30,000).Melanie contributes land and building worth $280,000 (adjusted basis of $200,000)and performs services worth $20,000 associated with the formation of the entity.Melanie receives a two-thirds ownership interest and Sonny receives a one-third ownership interest.Determine the tax consequences of the contributions to Melanie,Sonny,and Bird if the business is:

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Definitions:

Linear Relationship

A correlation between two variables where the change in one variable is proportional to the change in another.

Coefficient Of Skewness

A statistical measure that describes the asymmetry of the distribution of values in a data set around its mean.

Asymmetry

A situation where data or a distribution does not show symmetry and has one side that is different in shape or length from the other.

Coefficient Of Skewness

A measure quantifying the degree of asymmetry in the distribution of a dataset, indicating how much it deviates from a normal distribution.