Determine the Basis of Stock in the Hands of the Shareholder,the

question 107

Essay

Determine the basis of stock in the hands of the shareholder,the basis to the corporation of the contributed property,and the gain,if any,to the shareholder in each of the following independent cases.In all cases,assume that the 80% test is met.
a.Pierre contributes a vehicle with a FMV of $6,000 and basis of $8,000.
b.Marcus contributes land with a FMV of $500,000,basis of $300,000,and debt of $250,000.
c.Same as b.except Marcus also receives cash of $25,000.
d.Patricia contributes an apartment building with a FMV of $200,000,basis of $50,000,and debt of $125,000.

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Definitions:

Posterior

Anatomical term meaning toward the back of the body. Also called dorsal.

Body Structure

Refers to the organization and arrangement of physical parts of organisms, including their systems, organs, and tissues.

Brachial

Pertaining to the arm, specifically the part of the upper limb between the shoulder and the elbow.

Thigh

The part of the human leg between the hip and the knee, consisting of several muscles including the quadriceps and hamstrings.