Examlex
Norman transfers machinery that has a $45,000 basis and a $105,000 FMV and $30,000 in money to Elnor Corporation in exchange for 50 shares of Elnor stock.The machinery,used in Norman's business,originally cost him $150,000 and is subject to a $84,000 liability which Elnor Corporation assumes.Kate exchanges $51,000 cash for the remaining 50 shares of Elnor stock.
a)What is the amount and character of Norman's recognized gain or loss?
b)What is his basis in the Elnor stock?
c)What is Elnor's basis in the machinery?
d)What is the amount and character of Kate's recognized gain or loss?
e)What is Kate's basis in the Elnor stock?
f)When do Norman and Kate's holding periods for their stock begin?
Q22: Jeannie,a single taxpayer,retired during the year,to take
Q53: Form 4868,a six-month extension of time to
Q56: An electronics store sold a home theater
Q71: Which of the following dependent relatives does
Q73: Ahmad's employer pays $10,000 in tuition this
Q75: Leigh inherited $65,000 of City of New
Q81: A married taxpayer may file as head
Q82: Jeremy transfers Sec.351 property acquired three years
Q101: Which of the following items will not
Q107: Raoul sells household items on an Internet