Amount frans recognized gain or loss


Fran, George, and Helen form FGH Corporation. In exchange for 300 shares of stock of the corporation, Fran contributes property with a basis of $15,000, fair market value of $50,000 and subject to a liability of $20,000 which the corporation assumed. George contributes property with a basis of $20,000, fair market value of $30,000 in exchange for 250 shares of stock of the corporation with a value of $25,000 plus $5,000 cash. Helen performs services for the corporation and receives $2,000 worth of stock (20 shares) in exchange for the services.

What is...

a. Amount Fran's recognized gain or loss

b. Frans basis in the stock of the corporation

c. Corporation basis in the property received from Fran

d. Amount of Georges recognized gain or loss

e. Georges bais in the stock of the corporation

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Accounting Basics: Amount frans recognized gain or loss
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