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:

Radical Republicans

A faction within the U.S. Republican Party in the 19th century that advocated for the total abolition of slavery, equal rights for freed slaves, and harsh reconstruction policies for the Southern states.

Re-Admittance

The process or act of allowing someone or something that was previously removed or excluded to return or be part of a group or institution again.

Black Codes

Laws passed in the southern United States after the Civil War, intended to restrict African Americans' freedom and compel them to work in a labor economy based on low wages or debt.

Apprenticeship Laws

Legal frameworks historically designed to regulate the training of apprentices in skilled trades and professions.