Trish and Ron Form Pine Corporation

question 105

Essay

Trish and Ron form Pine Corporation. Trish transfers inventory (basis of $60,000 and fair market value of $110,000) for 50% of the stock in Pine. Ron transfers machinery (basis of $20,000 and fair market value of $60,000) and agrees to serve as manager of Pine Corporation for one year for 50% of the stock. What are the tax consequences to Trish, Ron, and Pine Corporation?

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Definitions:

Reverse Innovation

Innovation that comes from lower organizational levels and is found in diverse settings or locations.

Global Firms

Companies that operate and offer products or services in multiple countries across the world, transcending national boundaries.

Foreign Markets

Commercial markets or trading arenas outside a company's country of operation where goods, services, and securities are bought and sold.

Human Sustainability

Practices and initiatives aimed at ensuring the long-term well-being and quality of life of individuals within an organization or society.